Define utility using mathmatical expression.
utility is goods satisfing human want
In the context of economics, utility is a measure of how much satisfaction or happiness a consumer obtains from consuming a particular good or service. It is a subjective measure that varies from person to person.
Utility is typically represented mathematically using a utility function, which is a mathematical expression that maps various combinations of goods and services to a corresponding level of utility.
A common mathematical representation of utility is the Cobb-Douglas utility function, which is expressed as:
U(x1, x2, ..., xn) = (x1^a1) * (x2^a2) * ... * (xn^an)
In this expression, U represents utility, x1, x2, ..., xn represent the quantities of different goods or services consumed, and a1, a2, ..., an represent the respective utility coefficients or weights associated with each good or service.
Alternatively, a simpler and more general form of the utility function is the additive utility function, which is expressed as:
U(x1, x2, ..., xn) = a1 * x1 + a2 * x2 + ... + an * xn
In this expression, the coefficients a1, a2, ..., an represent the marginal utilities or importance of each good or service.
By specifying the values of the utility coefficients, economists can analyze consumer behavior, make predictions about preferences, and study the impact of changes in prices and incomes on consumer utility.