A util represents a unit of measurement for the:
A) dollars a consumer spends on a good.
B) profit a firm makes from producing a good.
C) way a consumer will respond to a change in price.
D) happiness a person obtains from consuming a good.
E) way a producer will respond to a change in price.

Question

Quizplus · Accepted Answer

A util is a hypothetical unit used to measure the satisfaction or happiness that a consumer derives from consuming a good or service. It is used in the context of utility theory, which seeks to explain how consumers make choices based on the perceived benefits and costs of different options. A higher level of utility or satisfaction is typically associated with a greater willingness to pay for a good, and vice versa.

A Util Represents a Unit of Measurement for The