The total satisfaction received from consuming a good or service is called utility. True False

The statement is True.

Utility is defined in economics as the total satisfaction or benefit that a consumer derives from consuming a good or service. It reflects the preferences and choices of individuals, indicating how much value they assign to different products or services. The concept can be further broken down into two types of utility: total utility and marginal utility. Total utility refers to the overall satisfaction obtained from the consumption of a certain quantity of goods or services, while marginal utility is the additional satisfaction gained from consuming one more unit of the good or service.

Understanding utility is crucial in consumer behavior analysis, as it influences purchasing decisions and market dynamics. Economists study how utility affects demand and pricing in the market, as well as how it shifts based on changes in consumer preferences, income levels, and other factors. Overall, the framework of utility helps explain how consumers make choices to maximize their satisfaction.