Relative and subjective nature of utility

Relative and subjective nature of utility - . Cigarettes...

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Relative and subjective nature of utility: Wants are satisfied with the help of various goods. The want satisfying quality of goods is called their utility . The quality of food to satisfy hunger and that of water to satisfy thirst are therefore their respective utilities. But utility is not an absolute or objective quality of any good. This is because wants are satiable. Therefore utility of a good is relative and subjective . Utility is relative to a person and his wants
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Unformatted text preview: . Cigarettes have utility for a smoker or medicines are useful for someone ill. This means that for a non-smoker or a healthy person these goods can bring no utility. Again for the same individual a cup of tea is highly refreshing in the morning, less refreshing in the evening and totally useless late at night. Therefore utility is subjective and depends upon person to person as well as the state of mind of a person at different times ....
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This note was uploaded on 11/26/2011 for the course ECON MICRO ec 201 taught by Professor - during the Fall '10 term at Montgomery.

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