Question

What is the economic definition of​ utility? Utility is A. the sum of consumer and producer surplus. B. the change in enjoyment or satisfaction a person receives from consuming one additional unit of a good or service. C. the decrease in additional satisfaction consumers receive as they consume more of a good or service during a given period of time. D. the difference between the highest price a consumer is willing to pay and the price the consumer actually pays. E. the enjoyment or satisfaction people receive from consuming goods and services.

Answer 1

Answer:

The correct answer is option E.

Explanation:

The utility can be defined as the enjoyment or satisfaction derived from the consumption of a good or service. The main motive of a rational consumer is utility maximization.  

The sum of consumer and producer surplus is total or aggregate surplus.

The change in utility or satisfaction derived from the consumption of a commodity because of consuming an additional unit of good or service is referred to as a marginal utility.

The decrease in utility or satisfaction with the increase in consumption is called disutility.  

The difference between the maximum price a consumer is willing to pay and the price he/she actually pays is called consumer surplus.  

Answer 2

Answer:

E. the enjoyment or satisfaction people receive from consuming goods and services.

Explanation:

Utility is the enjoyment or satisfaction people receive from consuming goods and services. Utility is the want-satisfying ability of any commodity or the capacity of a commodity to give satisfaction. Utility may measure how much one enjoys a play or drama, or the sense of security one gets from buying a deadbolt.