Question

Which of the following statements is true based on what we know about the properties of utility? Group of answer choices Alexandra receives 20 utility from drinking one soda and 25 utility from eating a pizza. Therefore, Alexandra enjoys pizza more than sodas. Alexandra receives 20 utility from drinking one soda, and Ally receives 20 utility from consuming one soda. They both receive the same level of satisfaction from consuming a soda. Natalie receives 20 utility from watching a movie while Andrew receives 30 utility from playing a video game. Therefore, Andrew enjoys video games more than Natalie enjoys movies. Ally receives 15 utility from consuming one pizza while Jason receives 25 utility from eating one pizza. Therefore, Jason enjoys pizzas more than Ally.

Answer 1

Alexandra receives 20 utility from drinking one soda and 25 utility from eating a pizza. Therefore, Alexandra enjoys pizza more than sodas.

Step-by-step explanation:

Utility is defined as the level of satisfaction that a consumer derives from consuming various products. It is subjective and is dependent on individual preferences.

So utility or level of satisfaction differs from one individual to the other.

For example 20 utility for Alexandra will be different for 20 utility from Jason as each person has a user defined measurement of utility.

The only option that conveys individual utility is - Alexandra receives 20 utility from drinking one soda and 25 utility from eating a pizza. Therefore, Alexandra enjoys pizza more than sodas.

Alexandra defines her own utility so her level of satisfaction can be compared when she consumes soda and pizza.

The other options compares utility between different individuals and this cannot be done objectively as each person defines his own utility.