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.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). utility. Retrieved September 20, 2026, from http://smartdefine.org/utility/definitions/1166081 |
| Chicago | Barry Goldsmith. 2010. "utility" http://smartdefine.org/utility/definitions/1166081 (accessed September 20, 2026). |
| Harvard | Barry Goldsmith 2010, utility, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/utility/definitions/1166081>. |
| MLA | Barry Goldsmith. "utility" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/utility/definitions/1166081> |