Utility

Utility: Utility is the ability of something to satisfy needs or wants.

>> Utility Represents satisfaction experienced by the consumer of a good. Not coincidentally, a good is something that satisfies human wants and provides utility.

>> For example, to a consumer making a purchase. It was recognized that one can not directly measure benefit, satisfaction or happiness from a good or service, so instead economists have devised ways of representing and measuring utility in terms of calculating economic choices.

>> In the simplest sense, economists consider utility to be revealed in people’s willingness to pay different amounts for different goods

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