Which of the following best describes the economic concept of utility?
A) Utility is the total number of units a consumer buys.
B) Utility measures the usefulness of goods, such as tools or food, and so goods such as artwork or attractive landscaping by definition has no utility.
C) Utility measures the satisfaction, or pleasure, that people receive from consuming a good or service.
D) Utility and price are interchangeable values.

Question

Quizplus · Accepted Answer

Utility refers to the satisfaction or pleasure that consumers receive from consuming a good or service. It is not related to the total number of units purchased or the price of the good. Additionally, utility can apply to all goods, including artwork or attractive landscaping, as these items can still provide satisfaction or pleasure to consumers.

Which of the Following Best Describes the Economic Concept of Utility