Q.Explain any four features of utility.

The capacity of a commodity to satisfy human wants = Utility.

Utility is the power or capacity of a good or service to satisfy a human want. It is the basic reason behind demand — a consumer buys a commodity because it yields utility.

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Odd word = Commodity utility.

Utility can be created in several forms by changing a good's place, shape or availability over time:

• Place utility — created by moving a good from where it is less useful to where it is more useful (transport).
• Form utility — created by changing the shape or form of a good (converting cotton into cloth). …

A blood bank preserves blood and makes it available at the moment of need, i.e. it creates usefulness across time — this is time utility. Correct option: only d.

Why: Utility means the want-satisfying power of a good or service, and it can be created in different forms:

• Form utility — created by changing the shape/form of a material (wood into furniture).
• Place utility — created by moving a good to where it is wanted (transport).
• Time utility — created by storing a good in a period of plenty and supplying it when it is needed (cold storage, warehousing, and a blood bank storing blood for emergencies). …

Completing the correlation: Form utility : Furniture :: Service utility : Doctor. Answer: Service utility.

Why: Utility (want-satisfying power) is created in different forms:

• Form utility — created by changing the form/shape of a material, e.g. wood shaped into furniture. …