Identify and explain the concept from the given illustration :
1) Salma purchased a sweater for her father in the winter season.
Ans : – Relative concept
The utility is related to time and place.
It varies from time to time and place to place.
woollen clothes have a greater utility in the winter.
2) Nilesh purchased ornaments for his sister.
Ans : – Subjective concept
It is a psychological concept.
Utility differs from person to person.
This is due to differences in taste, preferences, likes, dislikes, nature, habits, profession.
3) Kavita consumed five units of oranges one after the other.
Ans : – Total utility or continuity
Total utility (TU): Total utility refers to the aggregate of utility derived by the consumer from all units of a commodity consumed. It is an aggregate of utilities from all successive units of a commodity consumed.
continuity: All units of commodity are consumed in quick succession without any lapse of time.
4) Bhushan refused to eat fifth chapati after eating four chapatis.
Ans: – Point of satiety
After reaching the point of satiety, a rational consumer should stop his consumption since the maximum limit of satisfaction is reached and there is no addition to total utility by any further increase in the stock of a commodity.
5) Lalita satisfied her want of writing an essay by using pen and notebook.
Ans : – Utility
The utility is the capacity of a commodity to satisfy human wants. In other words, utility is the want satisfying power of a good.
Pen and notebook have utility to satisfy Lalita’s want an essay. Thus the concept is utility.