Utility measures the
A)income a consumer receives from consuming a bundle of goods.
B)satisfaction a consumer receives from consuming a bundle of goods.
C)satisfaction a consumer places on her budget constraint.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Utility measures the satisfaction a consumer receives from consuming a bundle of goods. It is not directly related to the income the consumer receives, nor does it relate to the satisfaction a consumer places on their budget constraint. Utility is a subjective measure of satisfaction and can vary from person to person.

Utility Measures the