S Equivalent Utility gains Suppose rice can be bought only in lumps of one kilogram o Use r, to denote the most a single consumer would pay for a 1st kilogram -call this her reservation price for the 1st kilogram .r, is the dollar equivalent of the marginal utility of the 1st kilogram◆Suppose rice can be bought only in lumps of one kilogram. ◆Use r1 to denote the most a single consumer would pay for a 1st kilogram -- call this her reservation price for the 1st kilogram. ◆r1 is the dollar equivalent of the marginal utility of the 1st kilogram. $ Equivalent Utility Gains