MCQ
True or False
State the following statement is True or False:
Utility is the basis of demand.
Options
True
False
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Solution
Utility is the basis of demand. -True
Explanation: The above statement is true. Demand for a commodity is based on the utility derived from it. A person will demand a commodity only if it gives him/her some satisfaction or utility, otherwise, it will not be demanded. Therefore, we can say that utility forms the basis of demand for a commodity.
Concept: Meaning of Utility
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