When utility is measured in quantitative terms, it is ____ of consumer equilibrium.

Cardinal Approach.

The correct answer is Option (2) → Cardinal Approach.

When utility is measured in quantitative terms (like 10 utils, 20 utils), it follows the Cardinal Approach to consumer behaviour.

• The Cardinal Approach assumes that utility can be measured and expressed in numerical units, often called "utils." This allows for the comparison of utility gained from different goods in a quantitative way.

• The Ordinal Approach, on the other hand, assumes that utility cannot be measured numerically. Instead, it can only be ranked or ordered based on a consumer's preferences. The Indifference Curve is the main tool used in this approach. 

• Indifference Curve Approach: Based on ordinal utility, not quantitative measurement.

• Law of Diminishing Marginal Utility: Related to cardinal approach, but it's a law, not the approach itself.