Question

Give two characteristics of utility.

Answer 1

The following are the characteristics of utility.

i. Utility is Subjective: Utility is subjective. It means utility of a commodity differs from person to person. Tea is of great utility for a man who is accustomed to it, but it has no utility for a man who is not used to it. 

ii. Utility is Relative: Utility is a relative concept. A commodity may possess different utility at different times or at different places. For example, a raincoat has greater utility in rainy season than in other seasons.