Meaning: -In ordinary sense, the term
utility means ‘usefulness’. In economics, utility refers to the “Want
satisfying power of a commodity”. For example: - Water has utility because it
can satisfy the thirst of a person.
Relative
concept: -
Utility of a commodity changes from time to time and place to place. For
example (1) Woollen clothes has more utility in Kashmir, than in Mumbai.
(2) Umbrella has more utility in rainy season, than in summer.
