Correct option is B
The Correct Answer Is: (B) It is the want of satisfying the capacity of a commodity.
Explanation:
Utility refers to the satisfaction or benefit that a consumer derives from consuming a good or service.
It is the ability of a commodity to satisfy human wants.
The statement "It is the want of satisfying the capacity of a commodity" correctly describes utility because a commodity is useful only if it can fulfill a person's needs or wants..
Additional Knowledge :
Types of Utility:
- Form Utility: Created by changing the form of a product (e.g., converting wood into furniture).
- Place Utility: Created by transporting goods from one place to another (e.g., wheat transported from farms to markets).
- Time Utility: Created by storing goods and making them available when needed (e.g., cold storage for fruits).
- Possession Utility: Created by transferring ownership of a product (e.g., purchasing a car).
- Total Utility (TU): The total satisfaction a consumer derives from consuming a given quantity of a good.
- Marginal Utility (MU): The additional satisfaction gained from consuming one more unit of a good.
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