Quiz 3

Q: Differentaite The Cardinal Approach And Ordinal Approach Of Conscumer Behaviour.

Cardinal approach Ordinal approach

Other Name Utility Analysis Indifference Curve Analysis
Date Of Theory 1890 1934
Presenter Name Alfred Marshall John Hicks and Roy Allen
Defination satisfaction level after consuming a good or service satisfaction after consuming a good or service

can be scaled in terms of countable numbers. cannot be scaled in numbers, however, these things

can be arranged in the order of preference.

Using Tools Utility is measured on the basis of utils. Utility is ranked on the basis of satisfaction.
Equilibrium Condition Consumer reaches equilibrium when he drives Consumer reaches equilibrium when he maximizes

maximum satisfaction for given resources (money). his total utility (satisfaction) for the given level of his

income and existing prices of goods.

Other Difference Quantitative approach Qualitative approach
Less realistic More realistic
Measurement in utils Measurement in ranks