State the following statements are True or False:
1. Utility depends upon intensity of want.
ANSWER:
1) Utility depends upon intensity of want. - True
Explanation:
The above statement is true. Utility is the satisfaction that a consumer expects to derive from the consumption of a particular unit of a good. It depends on the intensity of want of the particular unit of the good. The greater the intensity of want, the greater would be the satisfaction that the consumer would derive from the consumption of that unit of the commodity. That is, there is a strong and positive relationship between utility and the intensity of want.
