What does utility measure
A)the satisfaction a consumer receives from spending her income
B)the satisfaction a consumer receives from consuming a bundle of goods
C)the satisfaction a consumer places on her budget constraint
D)the satisfaction a consumer places on normal goods

Question

Quizplus · Accepted Answer

Utility measures the satisfaction a consumer receives from consuming a bundle of goods. While income and normal goods may influence utility indirectly, they are not direct measures of utility. Budget constraint is a constraint faced by consumers and does not represent their satisfaction.

What Does Utility Measure