To an Economist, Utility Refers to the

question 109

Multiple Choice

To an economist, utility refers to the

• A)usefulness of a good or service.
• B)satisfaction that results from the consumption of a good.
• C)relative scarcity of a good.
• D)rate of decline in the demand curve.

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Definitions:

Increase Supply

An upward shift in the supply curve, indicating more of a good or service is available for sale at any given price, usually the result of factors like improved technology or decreased production costs.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually pay.

Soybeans

Edible legumes native to East Asia, widely grown for their numerous uses, which include producing oil, as a source of protein, and in many food products.

Willingness To Pay

The maximum price a consumer is prepared to pay for a good.