Utility

  What Is Utility? A consumer is a person who usually decides his/her need for products and commodities according to the satisfaction he/she gets from it. The concept of utility in economics refers to the satisfaction a customer derives from a service or a product. Customers try their best to choose the commodities logically, to boost their utility. Different people can experience different levels of utility from the same products. For example, a person who loves eating fast food will achieve a higher utility from a burger compared to a person who doesn’t like eating fast food. Moreover, utility also varies with time and location. For instance, the utility of a room heater is subject to whether it is used in Kashmir or Cochin, and during summer or winter.  The commercial utility of products and services is also essential as it also influences the demand of a particular commodity and consequently, its price. Practically, consumers’ satisfaction or utility cannot be evaluated and measure