By which formula can we find marginal utility of income if total utility and income is given
There is no specific formula to find the marginal utility of income directly if only total utility and income are given. Marginal utility of income is typically calculated by considering the change in total utility resulting from a change in income.
One common approach is to calculate the change in total utility when income increases by a small amount (∆Y), and then divide this change in total utility by ∆Y.
Mathematically, the formula for marginal utility of income (∆U/∆Y) can be written as:
∆U/∆Y = (U2 - U1) / ∆Y
Where U2 is the total utility after the increase in income, U1 is the total utility before the increase in income, and ∆Y is the change in income.
It's important to note that calculating the marginal utility of income requires multiple observations of total utility at different income levels. Without additional information, such as a utility function or specific data points, it is not possible to determine the marginal utility of income with just total utility and income given.