Question 3 Draw indifference curves for the following sets of preferences and indicate the direction in which the individuals’ satisfaction (or utility) is increasing. Be specific about slopes when it is necessary. Assume for both parts (a) & (b) that soft drinks are measured on x-axis and hamburgers on the y-axis.  (a) Mary always gets twice as much satisfaction from an extra hamburger as she does from an extra soft drink.  (b) Bob loves soft drinks but dislikes hamburgers.

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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.