Utility refers to an item's worth, value, or usefulness. Utility is personal because it includes the enjoyment and satisfaction that you receive from using a product or service.

When making purchasing decisions, most consumers will ask themselves whether or not the product is worth the price.

Please watch the following video to understand more about utility:

Maximizing Utility

Video link: https://youtu.be/MXIgp-P-FeY?si=k3QenHurboj8PTyN

Think of the last time you had to make a thoughtful purchasing decision. This could be any type of purchase, from a car, to a phone, or entertainment. Discuss the following:

• What questions did you ask yourself when making your decision?
• How would your decision change if your income increased or decreased substantially, considering the concept of utility?