State the following statements are True or False: 2. Utility is the basis of demand.

State the following statements are True or False:
2. Utility is the basis of demand.
ANSWER:
2) Utility is the basis of demand. -True
Explanation:
The above statement is true. Demand for a commodity is based on the utility derived from it. A person will demand a commodity only if it gives him/her some satisfaction or utility, otherwise, it will not be demanded. Therefore, we can say that utility forms the basis of demand for a commodity.

No comments: