1. Marginal utility and consumer surplus

2. Marginal utility and consumer surplus Total and marginal utility

3. Darren’s utility from consuming crisps (daily)TU
Packets
of crisps TU
in utils 1 2 3 4 5 6 7 11 13 14
Utility (utils)
Packets of crisps consumed (per day)

4. Darren’s utility from consuming crisps (daily)TU
Packets
of crisps TU
in utils MU
in utils 1 2 3 4 5 6 7 11 13 14 - 7 4 2 1 -1
Utility (utils)
Packets of crisps consumed (per day)

5. Darren’s utility from consuming crisps (daily)TU
Packets
of crisps TU
in utils MU
in utils 1 2 3 4 5 6 7 11 13 14 - 7 4 2 1 -1
Utility (utils) MU
Packets of crisps consumed (per day)

6. Darren’s utility from consuming crisps (daily)TU
DTU = 2
DQ = 1
Utility (utils)
MU = DTU / DQ = 2/1 = 2 MU
Packets of crisps consumed (per day)

7. Marginal utility and consumer surplus

8. Tina’s marginal utility from petrolb c MU
MU, P (pence per litre)
Q (litres per annum)

9. Tina’s marginal utility from petrolb
Consumer
surplus c MU
MU, P (pence per litre)
Q (litres per annum)

10. Consumer surplus
MU, P P1 MU O Q1 Q

11. Consumer surplus
MU, P P1
Total
consumer
expenditure MU O Q1 Q

12. Consumer surplus Total consumer surplus Total consumer expenditure
MU, P
Total
consumer
surplus P1
Total
consumer
expenditure MU O Q1 Q