Sanjana loves to read books(B) and likes to watch movies(M) as well. She derives double  the satisfaction from reading a book than watching a movie. Her utility function is as follows U(B, M) = 2B + M Where B and M are the number of books and movies respectively. a. Explain the shape of the indifference curve using diagrams.  b. The income available with her is INR60. And price of movie ticket is INR 10 and that of a  book is INR 15. Will she spend her entire budget and why? What will be her consumption,  explain why?

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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.