Give reason or explain:
1. Utility is a subjective concept.
ANSWER:
1) Utility is the satisfaction that a consumer expects to derive from the consumption of a particular good. It is a subjective concept as it varies from person to person and from time to time. That is, a consumer defines a utility for himself. For example, a commodity, say apples, provides different levels of satisfaction to different people. Also, the same person can derive different levels of satisfaction from the consumption of apples, at different points of time (for example, at the time of illness, the apples may provide a higher level of satisfaction to the consumer).
