According to the expected utility theory, people should think about uncertain events in terms of gambles. In economic, utility refers to the entire satisfaction or benefit gained from consuming a good or service. The consumer utility maximization is commonly assumed in economic theories based on rational choice.
The economic usefulness of a good or service is critical to comprehend because it has a direct impact on demand, and thus price, for that good or service. In practice, it is frequently hard to assess or quantify a consumer's utility. They can indirectly evaluate the usefulness of an economic good or service.
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