Read the following statements carefully.
Statement 1: Any consumer will want to buy a combination of goods that gives maximum satisfaction.
Statement 2: The more the need of a commodity, the greater is the utility derived from the commodity.
Which statement/s are correct?

Both the statements are true.

Both the statements are true. Statement 1 is true because the consumer has to decide how to spend her income on different goods. Most naturally, any consumer will want to get a combination of goods that gives her maximum satisfaction because it is assumed in economics that a consumer is rational. Statement 2 is true because the more the need of a commodity, the greater is the utility derived from the commodity. For example, A thirsty person will derive more satisfaction or utility from drinking water as compared to a person who is not thirsty.