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How does utility analysis explain why people demand health?

The concept of utility analysis explores why people desire health. Utility refers to the level of satisfaction that an individual receives from the output of a good or service. For example, a brand new sports car is an example of a good. Although the actual car does not provide utility, the wind in your hair or the smell of the fresh leather does.

Focus your discussion on the following:

  • How does utility analysis explain why people demand health?
  • How does the law of diminishing marginal utility fit into the analysis?
  • APA format, 400 word minimum, Scholarly references

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