What is the meaning of utility?

utility theory explains consumer tastes and preferences. Consumers purchase those things that give them satisfaction or utility. As a consumer consumes more of any one product, other goods and services look more desirable. As one consumes more of a product, smaller and smaller increments of pleasure or satisfaction come from it. The law of diminishing marginal utility underlies the law of demand.

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APABarry Goldsmith. (2010). utility. Retrieved September 20, 2026, from http://smartdefine.org/utility/definitions/1166081
ChicagoBarry Goldsmith. 2010. "utility" http://smartdefine.org/utility/definitions/1166081 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, utility, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/utility/definitions/1166081>.
MLABarry Goldsmith. "utility" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/utility/definitions/1166081>
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