Question

Which of the following statements correctly shows how utility can change?

Options

• Utility always stays the same for every person

• Utility never depends on place or time

• Utility can increase or decrease based on someone's need and the situation

• Utility only depends on the market price

Answer 1

Utility can increase or decrease based on someone's need and the situation

Explanation:

Utility is subjective; it varies with each person, place, and circumstance, such as hunger or weather.