Ordinal utility

Ordinal utility is a way to rank different combinations of goods based on how much you prefer them, without assigning specific numeric values. It simply tells you which options you like more or less, rather than measuring exactly how much more. For example, if you prefer bananas over oranges, and oranges over apples, ordinal utility captures this ranking but doesn't specify how much more you prefer one over the other. It helps understand choices based on preference orderings, making it useful for analyzing consumer behavior without needing precise measurements of satisfaction.