Discuss the 3 dimensional concept of utility of Jevons.
⇒According to Jevons economic is a science which deals with subjective but calculable phenomenon. Thus the economics was concerned with the ordinal estimate. Pleasure and pain are undoubtedly the ultimate objects of the Calculas of Economics. It is a subjective phenomenon. He related commodity to utility. The aim of economic is to maximize utility, and it is possible by consuming a commodity in his theory of utility. He explains 3 dimensions of utility & they are firstly utility devices from a commodity. People always tries to maximize their utility.
Secondly he formulated the law of diminishing marginal utility where he states that if a consumer consumes more and more units of a commodity then the marginal utilities derived from the extra units goes on diminishing. He termed the marginal utility as final degree of utility.
Thirdly he propounded the law of equation marginal utility in which he states that consumers spend their money income on different commodities in such a manner that the marginal utilities derived from different commodities becomes equal with their price ratios.
The Jevons was the prominent economist who funded the marginal revolution with help of his utility theory.
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