She pointed to the notes:

MUn=TUn−TUn−1orMU=ΔTUΔQMU sub n equals TU sub n minus TU sub n minus 1 end-sub space or space MU equals the fraction with numerator cap delta TU and denominator cap delta Q end-fraction Relationship Between TU and MU

When MU reaches zero, TU reaches its maximum point. This point is called the or Point of Satiety . When MU becomes negative, TU starts declining. The Law of Diminishing Marginal Utility (DMU)

: The additional satisfaction derived from consuming one more unit ( Law of Diminishing Marginal Utility (DMU)

The consumer's mental behavior remains normal, aiming solely for maximum satisfaction. 3. Consumer Equilibrium under Cardinal Approach

The units of the commodity must be standard (e.g., a cup of water, not a spoonful).

For Indifference Curve analysis, always draw a clear, labeled diagram showing the IC tangent to the budget line.

The consumer aims to maximize satisfaction and is mentally sound.

Consumer equilibrium refers to a situation where a consumer spends their given income on one or more goods in such a way that they get maximum satisfaction and have no tendency to change their current expenditure pattern. 2. The Concept of Utility