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Utility
From ZuluNotes - Free Leaving Cert Notes
| Utility | |
|---|---|
| |
| This is an Economics definition | |
| It is found mainly in the Demand and Supply section | |
| Level | H/O |
Utility is the satisfaction gained from consuming goods and sercives.
Consumers are said to act rationally because they buy the goods that give them the most satisfaction.
The interaction of consumer rationality, utility and price is defined in the Equi-marginal principal.
Utility is subject to the The Law of Diminishing Marginal Returns, or more specifically, the Law of Diminishing Marginal Utility.
