ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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No
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Yes
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I don’t know what utility is.
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None of the above
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Detailed explanation-1: -Utility is always Individual and Relative: Utility of a commodity varies in different situations in relation to time and place. Even the same consumer may derive a higher or lower utility for the same commodity at different times and different places.
Detailed explanation-2: -Utility can be used to measure the usefulness of goods and services to consumers.
Detailed explanation-3: -The total utility is equal to the sum of utils gained from each unit of consumption. In the equation, each unit of consumption is expected to have slightly less utility as more units are consumed.
Detailed explanation-4: -It refers to the sum of a person’s satisfaction from consuming all units of a certain commodity. The second one is marginal utility, wherein additional utility is gained as a person consumes additional units of a product or service.