Chapter 7 Consumer Behavior1.UtilityA measure of the amount of satisfaction a person derives from something.Rational individuals maximize utility when making choices. 2.Utility basicsIncorporates emotions and sensations. Not typically comparable across individuals3.Revealed preferences显示性偏好Hard to measure. The principle of revealed preference: observe people choices and behavior. Unique to a specific choice of particular person at one date.4.Utility functionsThe principle of revealed preferences isn’t feasible for analyzing how people makes choices.Instead, a more formal method is required. Utility function aid in systematically analyzing choices.5.Utility functionsA formula for calculating the total utility that a particular person derives from consuming a combination of goods and services.6.BundleA unique combination of goods and services that a person could choose to consume.