Many of these concepts may be new to you as students. The homework will mostly be definitions or short answer to help you understand the topics. Definitions: Utility (from an economic point of view) -is a term in economics that refers to the total satisfaction received from consuming a good or service. ... The economic utility of a good or service is important to understand, because it directly influences the demand, and therefore price, of that good or service. Elasticity (from an economic point of view) - is an economic concept used to measure the change in the aggregate quantity demanded for a good or service in relation to price movements of that good or service. ... Conversely, a product is considered to be inelastic if the quantity demand of the product changes very little when its price fluctuates.