Question

What role does utilityLOADING... play in the economic model of consumer​ behavior? When modeling consumer​ behavior, utility

A. reflects the satisfactionsatisfaction a consumer receives from consuming a particular set of goods and services.
B. identifies the consumer who receives the most satisfaction from consuming a particular set of goods and services.
C. identifies the combination of goods and services that is leastleast expensive.
D. provides an objective measure of enjoymentenjoyment from consuming a particular set of goods and services in units called​ "utils."
E. identifies the combination of goods and services that can be produced most efficiently.

Answer 1

The correct answer is option A.

Step-by-step explanation:

In the theory of consumer behavior, the term utility is used to define the level of satisfaction derived by a consumer from the consumption of a good or service.

There are two methods to present utility.

1. Cardinal Utility
2. Ordinal Utility

The method of cardinal utility measures utility in the quantitative term where its units are called utils. The ordinal utility expresses utility in relative terms as high and low.