Cardinal utility assigns numerical values to satisfaction levels, while ordinal utility ranks preferences without numbers. Utility is subjective, relative to each individual, and not inherently useful or related to morality. Total utility increases initially but reaches a maximum, while marginal utility decreases with additional consumption due to diminishing returns. The law of equi-marginal utility states consumers maximize satisfaction by allocating income so the last rupee spent on each good yields equal marginal utility. Consumer surplus measures the difference between what consumers are willing to pay versus the market price actually paid.