Social Utility:

The term 'social utility' is concerned with the number of consumers and their interpersonal need for goods and services. We can also include here the concept of Cardinal and ordinal utility, which are given the different economists ( Prof. Marshall and Hicks) to measure the utility.

Therefore, the level of aggregate demand in an economy represents the level of social utility in the economy.

The study of social utility is considered and valued by utilitarians mainly. Some of the economists also believe that social utility can be measured with the level of happiness, produced in an economy in the form of goods and services. Therefore, the aggregate level of satisfaction in an economy is considered as the total social utility.