Understanding Utility: Consumer Choice, Preferences, and Axioms Part 1

The video "Understanding Utility: Consumer Choice, Preferences, and Axioms" provides a comprehensive guide to the concept of utility in microeconomics. The video starts by defining utility as the satisfaction or happiness a consumer derives from consuming a good or service.

The presenter explains how consumers make choices based on their preferences, which are shaped by factors such as personal tastes, income, and social influences. The video goes on to introduce the concept of a preference map and how it can be used to illustrate a consumer's preferences for different combinations of goods.

The video also covers the axioms of utility, which are the fundamental principles that underlie the concept of utility. The presenter explains the three axioms of utility: completeness, transitivity, and continuity, and how they are used to derive a utility function.

Furthermore, the video covers the concepts of total utility and marginal utility. The presenter explains how total utility the overall satisfaction is derived from consuming a certain quantity of a good, while marginal utility is the additional satisfaction derived from consuming an additional unit of a good.