Question

what goods and services, and how much each will satisfy consumers' need?

Answer 1

Goods are tangible items that can be produced in physical form. Examples are - pen, car, phones, cloths etc. Services on the other hand, do not have physical forms but are activities or functions provided by other people. Examples are - doctors provide medial treatment as service to his/her patients, bus driver provides transport service to his/her passengers etc.

Consumption and utilization of goods and services provide satisfaction to the customers or the end users. Goods and services can also be utilized in the production and usage of other goods and services respectively. Level of satisfaction depends on the quality of the goods and services and can vary from person to person. The utility(satisfaction) for every consumer is different and based on his necessity of required goods and services.