utility function
A)shows the relation between prices and a consumer's utility.
B)shows the relation between income and a consumer's utility.
C)shows the relation between the amount of goods consumed and a consumer's utility.
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

A utility function is a mathematical representation that shows the relationship between the amount of goods or services consumed and the level of satisfaction or utility a consumer derives from consuming them. It indicates how a consumer's preferences are ranked or ordered over different combinations of goods or services. Therefore, it only shows the relationship between the amount of goods consumed and a consumer's utility, not prices or income.

Utility Function