ppose a consumer with a utility function U(x,y) =x^(0.5)y^(0.5) and an income of $1,000.00. Considering that products X and Y are sold by the kilo and that their prices are 50.00 and 100.00 respectively, calculate: a) Maximizing amounts of x and y for the consumer b) Graphically sketch the consumer balance c) What would be the impact on the utility of this consumer, if a policy of distribution of good X was established so that each period the consumer "earns" 20 units of X at no cost? What will your new balan

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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.