Chapter 11.1, Problem 5R

To determine

To state: Consumer utility meaning.

Answer to Problem 5R

Consumer utility refers to the ability of any good and service to satisfy the demands of any customer.

Explanation of Solution

Consumer utility is defined as the satisfaction and fulfillment received by the customer after consuming products and services. It is of utmost important to a business, as it will help in determining the future growth of the company. If consumers are satisfied with the product, they will buy again and again. Through this, a company will be in a position to establish a good market base. Consumer utility is divided into four types- form, place, time and ownership utility.

Economics Concept Introduction

Introduction: Utility refers to the total satisfaction an individual gets from a product or a service.