A measure of the relative levels of satisfaction that consumers enjoy from the consumption of goods and services is called
A) consumer optimum.
B) the real-income effect.
C) utility.
D) the substitution effect.
E) the diamond-water paradox.

Question

Quizplus · Accepted Answer

Utility is the measure of satisfaction or usefulness that consumers derive from the consumption of goods and services. It is a concept used in economics to understand how consumers make choices in order to maximize their satisfaction. The other options - consumer optimum, real-income effect, substitution effect, and the diamond-water paradox - are related concepts but not the specific measure of relative satisfaction that is referred to in the question.

A Measure of the Relative Levels of Satisfaction That Consumers