Zara perceives tea (vertical axis) and coffee (horizontal axis) as perfect substitutes, where she is always willing to exchange 2 cups of tea with 1 cup of coffee. Assume that her income is $200 and the prices of tea and coffee are $4 and $5 per unit respectively. Clearly label your graph, showing the quantities of tea and coffee consumed.

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Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.