Which of the following statement is correct in relation to utility?
I.Utility of a good doesn't change from consumer to consumer.
II.The utility of a good remains constant even for different consumers on account of changes in the intensity of the want to be satisfied by its use.
III.The utility of a good is not to be equated with its usefulness.
Select the correct answer from the options given below -
Which of the following statement is correct in relation to utility?
I.Utility of a good doesn't change from consumer to consumer.
II.The utility of a good remains constant even for different consumers on account of changes in the intensity of the want to be satisfied by its use.
III.The utility of a good is not to be equated with its usefulness.
Select the correct answer from the options given below -
The correct option is D III only
The utility of a good
doesn't depend on the usefulness of the good but on how a consumer perceives
it. For example, a pizza lover may find higher utility in pizza than a regular
consumer. Therefore, utility of a product changes with consumer to consumer
with change in it's tendency depending on how the consumer perceives that
commodity given the situation and price of the commodity.
The utility of a good doesn't depend on the usefulness of the good but on how a consumer perceives it. For example, a pizza lover may find higher utility in pizza than a regular consumer. Therefore, utility of a product changes with consumer to consumer with change in it's tendency depending on how the consumer perceives that commodity given the situation and price of the commodity.
