Read the following statements -
Assertion (A) and Reasoning (R):
Assertion: Utility is subjective.
Reasoning: A person who has a stronger desire to have the commodity will derive greater utility from the commodity as compared to a person who has relatively less strong desire to have that same commodity.
From the given alternatives choose the correct one:
Answer & explanation
Correct answer: option 1
Say there are two persons, A and B. A is very thirsty and B is not thirsty. Both are given water to consume. A, who is thirsty, will derive more satisfaction or utility from drinking water as compared to person B, who is not thirsty, and is drinking the same commodity i.e. water in same amount.