What is the economic definition of utility? Utility is A. the sum of consumer and producer surplus. B. the change in enjoyment or satisfaction a person receives from consuming one additional unit of a good or service. C. the decrease in additional satisfaction consumers receive as they consume more of a good or service during a given period of time. D. the difference between the highest price a consumer is willing to pay and the price the consumer actually pays. E. the enjoyment or satisfaction people receive from consuming goods and services.

E. the enjoyment or satisfaction people receive from consuming goods and services.

Explanation:

Utility is the enjoyment or satisfaction people receive from consuming goods and services. Utility is the want-satisfying ability of any commodity or the capacity of a commodity to give satisfaction. Utility may measure how much one enjoys a play or drama, or the sense of security one gets from buying a deadbolt.

The correct answer is option E.

Explanation:

The utility can be defined as the enjoyment or satisfaction derived from the consumption of a good or service. The main motive of a rational consumer is utility maximization.

The sum of consumer and producer surplus is total or aggregate surplus.

The change in utility or satisfaction derived from the consumption of a commodity because of consuming an additional unit of good or service is referred to as a marginal utility.

The decrease in utility or satisfaction with the increase in consumption is called disutility.

The difference between the maximum price a consumer is willing to pay and the price he/she actually pays is called consumer surplus.