Asked by Kareena Liling on May 27, 2024
Verified
The relation between an individual's consumption bundle and her satisfaction is called a _____ function.
A) demand
B) production
C) consumption
D) utility
Utility Function
A mathematical representation in economics of how a person ranks different bundles of goods according to their level of happiness or satisfaction.
Consumption Bundle
The collection of all the goods and services consumed by a given individual.
Satisfaction
The feeling of pleasure or contentment resulting from achieving one's goals or meeting one's needs and desires.
- Draw a distinction between marginal utility and total utility.
- Examine the connection between consumer gratification, utility, and consumption patterns.
Verified Answer
TL
Taise LigonsMay 30, 2024
Final Answer :
D
Explanation :
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.
Learning Objectives
- Draw a distinction between marginal utility and total utility.
- Examine the connection between consumer gratification, utility, and consumption patterns.