S Equivalent utility gains 4 Now that she has one kilogram,use r2 to denote the most she would pay for a 2nd kilogram -this is her reservation price for the 2nd kilogram. +r2 is the dollar equivalent of the marginal utility of the 2nd gallon◆Now that she has one kilogram, use r2 to denote the most she would pay for a 2nd kilogram -- this is her reservation price for the 2nd kilogram. ◆r2 is the dollar equivalent of the marginal utility of the 2nd gallon. $ Equivalent Utility Gains