‌hello friends it's Subhash and you're watching
economics guruji. in this video we will study
about utility and features of utility.
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So let's start first of all concept of utility
The simple meaning of ‘utility’ is ‘usefulness’.
In economics utility is the capacity of a
commodity to satisfy human wants If we have
to define utility then we can define the utility
as Wants satisfying power of a good is called
utility Or Utility is a quantity of satisfaction
earned from a good or service by a person.
Utility is the quality of goods to satisfy
human wants.
Thus, it is said that “Wants satisfying
capacity of goods or services is called Utility.”
In the simple word utility is the satisfaction
earned from units of a good or service in
a given time period.
For example utility of a fan is air similarly
The utility of air conditioner is to give
cool air.
likewise The utility of tea or coffee is to
provide heat to the body.
That is, the utility is the quality of the
substance that gives us satisfaction.
Now let's study the features of utility.
The first feature is utility is psychological
phenomenon The first feature is utility is
psychological phenomenon.
Utility of a commodity depends on a consumer’s
mental attitude and assessment regarding its
power to satisfy his particular want.
Thus, utility of a commodity may differ from
person to person.
Psychologically, every consumer has his likes
and dislikes and everyone determines his own
level of satisfaction.
For instance:
A consumer who is fond who is fond of apples
may find a high utility in apples in comparison
to the consumer who has no liking for apples.
Similarly a strictly vegetarian person has
no utility for mutton or chicken.
The second feature is utility is subjective
or Utility cannot be Measured Objectively
. Utility being a subjective phenomenon or
feeling of a consumer cannot be expressed
in numerical terms.
So utility cannot be measured cardinally or
numerically.
It cannot be measured directly in a precise
manner.
Professor Marshall has however, unrealistically
assumed cardinal measurement of utility in
his analysis of demand.The Next the third
feature of utility is utility is relative
concept 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.
For example—a person may find more utility
in woolen clothes during the winter than in
summer or at Kashmir than at Mumbai.
the Next is utility is not affected by normal
duties or principals Utility simply means
the ability to satisfy a want.
A commodity may have utility but it may not
be useful to the consumer.
For example —A cigarette has utility to
the smok smoker but it is injurious to his
health.
However, demand for a commodity depends on
its utility rather than its usefulness.
Thus many commodities like liquor, cigarettes
etc. have demand because of utility, even
though, they are harmful to human beings.The
next is Utility is related to expected satisfaction
and not from actual released satisfaction.
Utility and satisfaction, both are though
inter-related but they have not been considered
as the same in a strict sense.
Friends These are the some features of utility
if you like this video then please hit the
like button in the next video we will study
about total and marginal utility.
So keep watching economics Guruji Thanks
