When an economist talks about utility, she is talking about A. a company that provides electricity, water, gas, etc. B. the satisfaction, in terms of price, that a producer receives from selling his product C. the amount of one good that a person is willing to give up in order to get a unit of another good D. the satisfaction that results from the consumption of a good E. the satisfaction that results from the consumption of a good minus the price that must be paid to get the good

Question

Mylie Tyler

Business

20 February, 09:49

When an economist talks about utility, she is talking about A. a company that provides electricity, water, gas, etc. B. the satisfaction, in terms of price, that a producer receives from selling his product C. the amount of one good that a person is willing to give up in order to get a unit of another good D. the satisfaction that results from the consumption of a good E. the satisfaction that results from the consumption of a good minus the price that must be paid to get the good

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Answers (1)

Know the Answer?

Kamron · Answer 1

The correct answer is letter "D": the satisfaction that results from the consumption of a good.

Explanation:

Utility is the satisfaction that a person receives from using a good or service. Utility is a very easy concept to understand but very hard to quantify. Economists may, however, indirectly calculate utility based on the economic choices made by consumers.