What Is The Difference Between The Cardinal Approach And Ordinal Approach?

Hi.. I would try to help you out but you should consult more expert people..             Cardinal and ordinal approaches both are related to the UTILITY of a commodity. As you know utility is the want satisfying capacity or ability of a commodity.. Now acc. To the cardinal approach utilities of 2 commodities can be measured as well as compared ( in terms of number of units of a commodity purchased).. On the other hand the ordinal approach says it is not possible   to measure utility of a commodity. If we think logically utility is totally a subjective experience.   Some commodity which might have utility for you might not have for me or may be the degree or extent of utility might be different for 2 people.Thus logically it is not possible to measure utility in exact terms. Therefore the ordinal approach is considered to be better than the cardinal approach as it is more realistic and practical.                                                                                        Do consult your teachers.

Cardinal and ordinal approaches are related to theory of consumer behaviour. It is related to the utility of a commodity.. UTILITY of a commodity means want satisfying power of a commodity.. NOW acc. To the cardinal approach utility can be measured in absolute terms i.e; in terms of units of the commodity.. On the other hand ordinal approach says that utility cannot be measured as it is a subjective experience and varies from person to person.

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