Q. Which of the following statements regarding utility is/are not true?

1. It is satisfying of a commodity
2. A utility is always miserable
3. It helps a consumer to make choices

Select the correct answer from the codes given below:
Answer: Only 2
Notes: Only the third statement is incorrect with respect to utility. A utility is not always miserable. A consumer usually decides his demand for a commodity on the basis of utility (or satisfaction) that he derives from it. What is utility? Utility of a commodity is its want-satisfying capacity. The more the need of a commodity or the stronger the desire to have it, the greater is the utility derived from the commodity. Utility is subjective. Different individuals can get different levels of utility from the same commodity.