Question

Which statement best explains the "subjective" nature of utility in economics?

Options

• Utility remains constant for everyone

• Utility changes according to each person's needs and situation

• Utility is the same as usefulness

• Utility always provides pleasure

Answer 1

Utility changes according to each person's needs and situation

Explanation:

Utility depends on individual habits, preferences, or professions, making it subjective and variable for each person.