DEPARTMENT OF TECHNICAL

EDUCATION ANDHRA PRADESH

Name : H. Srividya
Designation : SL/CCP
Branch : Commercial & Comp.Practice
Year/Semester : V Semester
Institution : GPW,Palamaner,Chittoor Dist.
Subject : Business Economics
Sub. Code : CCP-502
Topic : Consumer Surplus
Duration : 50 Min.
Sub-Topic : Graphical representation of
Law of Equi-Marginal Utility
Teaching Aids : Power Point

CCP-502.25 1
 Objectives
On completion of this period, you would be able
to:

 Explain the Law of Equi-Marginal Utility

graphically

CCP-502.25 2
 Recap

In the previous class, we have discussed about-

 The definition of the law of equi-marginal utility
 Meaning of weighted marginal utilities
 Illustration of the law with utility table

CCP-502.25 3
Law of Equi-Marginal Utility
Rice
Y
 X-axis

M ice
Amount spent

U
R

C
 Y-axis

ur
ve
MU of Rice 15
MU of Rice

of
At Rs. 3
marginal utility= 15

O 3 X
Rupees
CCP-502.25 4
Law of Equi-marginal utility
Vegetables Y
X-axis

MU geta
Amount spent

ve
Mu of vegetables

cu bles
Y-axis

rve
15

of
MU of vegetables
At Rs. 2
Marginal Utility=15
O
2 X
Rupees
CCP-502.25 5
Law of Equi-Marginal Utility

Fruits
X-axis: Y
Amount spent

MU s
Fru
Y-axis:

curv
it
MU of Fruits 15
MU of fruits

e
At Rs. 1

of
Marginal utility=15

O 1 Rupees X
CCP-502.25 6
The Law of Equi-Marginal Utility

 On all the three commodities, the last rupee spent

is giving the same marginal utility i.e. 15 utils

CCP-502.25 7
Summary
In this class, we have discussed about-

 The graphical representation of the law of equi –

marginal utility

CCP-502.25 8
Quiz
1.The Marginal Utility curve slopes_______

A) Downwards
B) Upwards
C) None of the above

CCP-502.25 9
Frequently Asked Questions
1. Explain the Law of Equi-marginal Utility
graphically

CCP-502.25 10
Assignment

1. Describe the graphs used to explain theory of

Equi-marginal utility

CCP-502.25 11