Utility function in economics

A utility function in economics is a tool that represents how much satisfaction or happiness a person gets from consuming different goods and services. It helps to understand preferences, showing which options people prefer and how they trade off one product for another. For example, if someone values both apples and oranges, their utility function quantifies their overall satisfaction based on how many of each they consume. This concept helps economists analyze decision-making, choice behavior, and how people allocate their limited resources to maximize their overall happiness.