The satisfaction derived from the consumption of a commodity is referred to as

Step 1: Analyze the question The question asks for the economic term that describes the satisfaction a person gets from consuming a good or service.

Step 2: Explain the concept In Economics, utility is the satisfaction or benefit a consumer gets from consuming a good or service. It is the foundation of consumer behavior theory, including:

• Total utility: the overall satisfaction from consuming all units of a commodity.
• Marginal utility: the extra satisfaction from consuming one more unit.
• Law of diminishing marginal utility: as you consume more units of a commodity, the additional satisfaction from each extra unit eventually falls.

Step 3: Check each option

• A. Consumption: This is the act of using goods and services, not the satisfaction gained from it.
• B. Production: This is the creation of goods and services, which is unrelated to satisfaction.
• C. Utility: This is the satisfaction derived from consuming a commodity. ✔
• D. Demand: This is the quantity of a good consumers are willing and able to buy at a given price, not the satisfaction itself.

Step 4: Answer The correct option is C. utility.

Exam tip: Remember the link: Utility = Satisfaction. When you see words like "satisfaction," "benefit," or "pleasure" from consuming something, think utility. Also watch for follow-up questions on marginal utility, which JAMB loves to test.