chocolate milk + muffin or a small quiznos sub?hmm...it all depends on the level of utility!
You are probably wondering what the hell i'm talking about!
Well..be a lil bit patient if u wanna no the answer
Utility is the amount of satisfaction derived from consuming a good.....
so......
if you want to calculate , for example, if buying the chocolate milk + muffin is better or the sub all you gotta do is.....well ... the following :
let's say that you are willing and able to spend up to
$10
& the Ch+Mf = $3 and the sub=$6
then think to urself:
how much do i want that muffin + chm? (kh...im so hungry!! ) 6/10
how much do i want the sub?(hmm..quiznos...with cheddar cheese and grilled steak... ...yum!!) 10/10
so which one should i buy???
this is how u do the calculation
$3/(6/10)= 5
$6/(10/10)=6
>> since the utility for the sub is higher u should buy that one!
Well..be a lil bit patient if u wanna no the answer
Utility is the amount of satisfaction derived from consuming a good.....
so......
if you want to calculate , for example, if buying the chocolate milk + muffin is better or the sub all you gotta do is.....well ... the following :
let's say that you are willing and able to spend up to
$10
& the Ch+Mf = $3 and the sub=$6
then think to urself:
how much do i want that muffin + chm? (kh...im so hungry!! ) 6/10
how much do i want the sub?(hmm..quiznos...with cheddar cheese and grilled steak... ...yum!!) 10/10
so which one should i buy???
this is how u do the calculation
$3/(6/10)= 5
$6/(10/10)=6
>> since the utility for the sub is higher u should buy that one!
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