Economic utility

Economic utility refers to the satisfaction or benefit that individuals derive from consuming goods and services. It measures how well a product or service meets a person's needs and desires. Higher utility means greater satisfaction. People make choices to maximize their utility, balancing what gives them the most benefit with available resources and alternatives. Utility helps explain consumer behavior and preferences in economics, guiding how resources are allocated in markets. It is a subjective measure, meaning different individuals may derive different levels of satisfaction from the same good or service.