The theory of utility // Economy

in Project HOPE4 days ago


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Greetings, friends back with more content from the economic world, and several posts have mentioned major issues, from supply and demand, now well from the point of view of consumer studies, as a reader friend when talking about utility at the level Economics refers to the level of satisfaction that the consumption of a good or service gives.


It is also necessary to consider that each consumer has their tastes and preferences as their indicator of consumption and demand, which will be subject to their income level, but taking into account the benefit for the price they paid and that is precisely where it lies utility, the level of optimization is what will allow us to understand the utility theory, which will allow us to measure and compare the levels of satisfaction that customers obtain when paying for a product or service, the determinant as a variable is "taste and preference of the consumer ", according to purchasing power and needs.


This indicator is applied by a consumer and service company to measure: level of savings, ability to pay, consumer behavior, which allows you to improve the market segments according to the need offered and thus stimulate consumer demand and services. Also to manage the price indexes, which is limited according to the time of the level of annoyance either in the long or medium term, according to the level of need of the consumer or family unit.


The singularity of this theory that allows us at a personal and business level to establish consumption objectives, savings levels, create new trends in consumer culture that annoy needs in a more optimal way with fewer resources. Under the approach proposed by Adam Smith, where he understood that work was the quality of exact measure to quantify the value of the good produced, since the value was the amount of work that one could receive in exchange for their merchandise, created a trend of the Economic goods could increase in value in the market, thus stimulating the demand for goods and services.


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 4 days ago 

@tipu curate

Very important the theory of utility for the predominant economic factors in consumer societies, greetings my dear friend @newton666 and thank you for sharing important content.