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State the Following Statement is True Or False: Utility is the Basis of Demand. - Economics

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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APPEARS IN

Micheal Vaz Economics HSC 12th Standard Maharashtra State Board
Chapter 2 Consumer's Behavior
Exercise | Q 3.2 | Page 16
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