PPT: Chapter 2 - Theory of Consumer Behaviour, Class 12, Microeconomics PDF Download

 Page 2


• Meaning :- Utility means want satisfying power of a 
commodity. 
• It is the quality of utility which satisfies the human want.
• Definition :- According to “Prof. Stanley Jevons”, “Utility is 
the capacity of a commodity to satisfy human wants”.
• Example :- We say that ‘mobile phone’ is such a useful 
product as it satisfies our want of ‘communicating’.
Page 3


• Meaning :- Utility means want satisfying power of a 
commodity. 
• It is the quality of utility which satisfies the human want.
• Definition :- According to “Prof. Stanley Jevons”, “Utility is 
the capacity of a commodity to satisfy human wants”.
• Example :- We say that ‘mobile phone’ is such a useful 
product as it satisfies our want of ‘communicating’.
1) Forms as the basis for 
demand
2) Ethically neutral
3) Also different from 
usefulness
4) The measurement is not 
possible
5) Utility and Satisfaction are 
different 
6) Relative concept
7) Even different form 
pleasure
8) Subjective concept
9) Utility depends on intensity 
of the want
Page 4


• Meaning :- Utility means want satisfying power of a 
commodity. 
• It is the quality of utility which satisfies the human want.
• Definition :- According to “Prof. Stanley Jevons”, “Utility is 
the capacity of a commodity to satisfy human wants”.
• Example :- We say that ‘mobile phone’ is such a useful 
product as it satisfies our want of ‘communicating’.
1) Forms as the basis for 
demand
2) Ethically neutral
3) Also different from 
usefulness
4) The measurement is not 
possible
5) Utility and Satisfaction are 
different 
6) Relative concept
7) Even different form 
pleasure
8) Subjective concept
9) Utility depends on intensity 
of the want
1) Place utility – Due to the 
change in place of 
utilization. Eg:- Sea sand, 
mango, etc.
2) Service utility – When any 
service is rendered from one 
person to another. Eg:-
lawyers, teachers, etc.
3) Time utility – Due to the 
change in time of utilization. 
Eg:- umbrellas, crackers, etc.
4) Form utility – Due to the 
change in the form of shape of 
goods. Eg:- wood, sugarcane, 
etc. 
5) Knowledge utility – When the 
user or buyer gains knowledge 
about the product. Eg:-
washing machine, computer, 
etc.
6) Possession utility – When the 
legal ownership and possession 
gets transferred. Eg:- house, 
cake in the shop, etc. 
Page 5


• Meaning :- Utility means want satisfying power of a 
commodity. 
• It is the quality of utility which satisfies the human want.
• Definition :- According to “Prof. Stanley Jevons”, “Utility is 
the capacity of a commodity to satisfy human wants”.
• Example :- We say that ‘mobile phone’ is such a useful 
product as it satisfies our want of ‘communicating’.
1) Forms as the basis for 
demand
2) Ethically neutral
3) Also different from 
usefulness
4) The measurement is not 
possible
5) Utility and Satisfaction are 
different 
6) Relative concept
7) Even different form 
pleasure
8) Subjective concept
9) Utility depends on intensity 
of the want
1) Place utility – Due to the 
change in place of 
utilization. Eg:- Sea sand, 
mango, etc.
2) Service utility – When any 
service is rendered from one 
person to another. Eg:-
lawyers, teachers, etc.
3) Time utility – Due to the 
change in time of utilization. 
Eg:- umbrellas, crackers, etc.
4) Form utility – Due to the 
change in the form of shape of 
goods. Eg:- wood, sugarcane, 
etc. 
5) Knowledge utility – When the 
user or buyer gains knowledge 
about the product. Eg:-
washing machine, computer, 
etc.
6) Possession utility – When the 
legal ownership and possession 
gets transferred. Eg:- house, 
cake in the shop, etc.