CONCEPT OF UTILITY AND HOW IT CHANGES

What is utility?
The satisfaction people derive from their consumption activities.Utility is the want satisfying power of any commodity or capacity of a commodity to give satisfaction.
At the end of the day you should be happy because you are in pursuit of happiness.
This satisfaction in economics is termed as utility. It is the satisfaction level.
Example- you have a choice of either studying or playing cricket. You compared the utility you are going to get from both. You thought if you play cricket at that particular time you will be satisfied so you decided to play cricket.
Types to measure utility
Ordinal utility vs cardial utility
Cardial utility basically gives ratings. For example: Bahubali 2 movie got 8.8 IMDB rating. The way how you quantify is cardial utility.
That rating then leads to ranking. For example: Bahubali became the best film i.e. it ranked 1st among all other films released with it. Once its ranked we only go for ranks. We will definately go for top 10 films of that month.
This ranking process is ordinal utility.
HOW UTILITY  DIMINISHES?
Principal of diminishing marginal utility: The more of a good that one consumes in a specific period of time the less additional utility derived from additional unit.
Example: Suppose you are very hungry and you bought 5 cakes for youself. You ate the 1st cake
and it had a high satisfaction. When you are eating the second cake your appetite is getting more satisfied. When you are taking the third you are actually getting less benifit or less satisfaction and the utility decreases.
Utility diminishes over time: The shorter the time period the more quickly marginal utility diminishes.
Consumers are not identical: The rate at which marginal utility diminishes depends on individual tastes and preferences and so differs across customers.
Example: Suppose a new movie released. You may liked that story so much that you watched 3 times and tgen got satisfied on the other hand your friend watched only once and he got satisfied and did not want to watch again.