To answer: Why do economists use the concept of utility to describe people’s taste? Concept Introduction: Utility: This is the benefit or satisfaction derived from the consumption of a good or service. Marginal utility : This is the additional benefit or satisfaction derived from the consumption of an additional unit of a commodity or service. Diminishing marginal utility: The diminishing marginal utility of economics says that if a person increases his consumption on a particular good while the consumption of other goods are at constant, it will result in a decrease of utility of that person if he consumes an extra additional unit of the particular commodity

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Chapter 10, Problem bWYWL

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Why do economists use the concept of utility to describe people’s taste?

Concept Introduction:

Utility: This is the benefit or satisfaction derived from the consumption of a good or service.

Marginal utility: This is the additional benefit or satisfaction derived from the consumption of an additional unit of a commodity or service.

Diminishing marginal utility: The diminishing marginal utility of economics says that if a person increases his consumption on a particular good while the consumption of other goods are at constant, it will result in a decrease of utility of that person if he consumes an extra additional unit of the particular commodity

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