Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P x . Assume that P = $8, I = 200, and P x = $10.
-Utility is most closely defined as _____.
A)the purchasing power of individuals
B)welfare maximization
C)a medium of exchange
D)satisfaction
E)an opportunity cost

Question

Quizplus · Accepted Answer

Utility refers to the satisfaction or happiness that a consumer derives from consuming a particular good or service. Therefore, option D is the correct choice.

Scenario 5.1 The Demand for Noodles Is Given by the Following Equation