The relation between an individual's consumption bundle and her satisfaction is called a _____ function.
A)demand
B)production
C)consumption
D)utility

Question

Quizplus · Accepted Answer

The satisfaction an individual derives from consuming a particular bundle of goods or services is measured by a utility function. The other options (demand, production, and consumption) are not directly related to measuring satisfaction. Demand refers to the quantity of a good or service that consumers are willing and able to buy at a given price. Production refers to the creation of goods and services using factors of production. Consumption refers to the using up of goods and services by individuals or households.

The Relation Between an Individual's Consumption Bundle and Her Satisfaction