Meaning of utility and Consumer Equilibrium Video Lecture | Economics Class 11 - Commerce

utility what do you think is utility
when we talk about utility the first
thing that comes to our mind is
usefulness at is how good a commodity is
useful to us but utility does not mean
usefulness let's see what does utility
mean utility is the bond satisfying
power of a commodity it is the power of
a commodity to satisfy the wants of
humans for example when you eat a
chocolate it satisfies your Warren to
have something sweet so a chocolate has
the part to satisfy the bond of humans
utility is subjective now by the word
subjective we mean that utility for
different people is different it is not
constant for all it does not have a
distinctive meaning it is different for
everybody for example a person who likes
to have sweets may derive a good amount
of utility from chocolates but a person
who does not like sweet
he may not derive any utility from
chocolates so utility of a commodity for
different people is different thus we
call utility as subjective we've already
discussed this point utility is not same
as usefulness utility does not equal to
usefulness because there may be many
things which are useful but they might
not have utility
conversely there may be other things
which have utility but are not useful
for example cigarettes I covered drugs
these things are not useful to men
we should ideally not consume these
things these commodities however to a
drunkard liquor has utility to a drug
addict drugs have utility thus we can
say that utility and usefulness are two
different things
utility is ethically neutral now as I
have already explained in the above
point utility is not same as usefulness
I gave you the example of cigarettes I
gave you the example of liquor I give
you the example of drugs now having
drugs may not be ethical it may be
unethical but in economics since a
cigarette or drug has utility we can say
we can measure the YouTube we can
measure the utility of drugs we can
measure the utility of cigarettes so
from the economic perspective economic
does not differentiate between ethical
and unethical goods so it is ethically
neutral utility is anticipated
satisfaction
it is the anticipated satisfaction
though it is the bond satisfying part of
a commodity but it is only the
anticipated satisfaction you always
think that you might derive utility from
a particular product take water for
example a thirsty person always expects
water to satisfy his one now if the
water actually satisfies his bond or no
is not the utility utility always is
anticipated