The want satisfying power of a commodity is known as:a)Utilityb)Consumptionc)Supplyd)DemandCorrect answer is option 'A'. Can you explain this answer?

Question

Answer

Yes utility is a correct answer

Wants satisfying power known as utility.

Answer

Any commodity has capacity to satisfy human want is called utility.   e.g = bread has capacity to satisfy hunger human.

Answer

Utility is a wants satisfying power / capacity of goods and services.

Answer

Utility is a want satisfied power In the terms of util s

Answer

Utility
Utility refers to the satisfaction or happiness that a consumer derives from consuming a particular commodity or service. It represents the want-satisfying power of a commodity. The concept of utility is central to understanding consumer behavior and the demand for goods and services in the market.

Explanation:
1. Utility as a concept
Utility is a subjective concept that varies from person to person. It depends on individual preferences, tastes, and needs. For example, a person may derive utility from consuming a chocolate bar, while another person may derive utility from consuming a piece of fruit.

2. Measurement of utility
Utility is not directly measurable in monetary terms. It is a psychological concept that represents the level of satisfaction or happiness a person experiences. Economists use the concept of utility to explain consumer behavior and make assumptions about consumer preferences.

3. Marginal utility
Marginal utility refers to the additional satisfaction a consumer derives from consuming an additional unit of a commodity. It helps explain the law of diminishing marginal utility, which states that as a consumer consumes more units of a commodity, the additional satisfaction derived from each additional unit decreases.

4. Consumer choice and utility maximization
Consumers aim to maximize their utility when making consumption choices. They allocate their limited income among different goods and services to achieve the highest level of satisfaction. The principle of diminishing marginal utility is important in understanding consumer choices, as consumers tend to allocate their income to goods and services that provide the highest marginal utility.

5. Demand and utility
The concept of utility is closely related to the concept of demand. The quantity demanded of a commodity is influenced by the level of utility it provides to consumers. As the level of utility increases, the demand for a commodity also increases. Conversely, if the level of utility decreases, the demand for a commodity decreases.

Conclusion
Utility is a fundamental concept in economics that explains the want-satisfying power of a commodity. It represents the level of satisfaction or happiness a consumer derives from consuming a particular good or service. Understanding utility is crucial in analyzing consumer behavior, making assumptions about consumer preferences, and explaining the demand for goods and services in the market.

Answer

A

Answer

A) utility

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