A woollen coat gives a person high utility in Shimla in winter, but little utility in Chennai or in summer. What does this show?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Utility from a commodity can change with place and time
The same coat gives high utility in a cold place and season, and little in a hot one. So utility changes with place and time.
The coat, its price and the person’s income are the same in both cases. Only the place and the season differ, so utility is not fixed by the good itself.
NCERT (2026-27): “2.1 Utility … Utility of a commodity is its want-satisfying capacity. The more the need of a commodity or the stronger the desire to have it, the greater is the utility derived from the commodity. Utility is subjective. Different individuals can get different levels of utility from the same commodity. … Also, utility that one individual gets from the commodity can change with change in place and time. For example, utility from the use of a room heater will depend upon whether the individual is in Ladakh or Chennai (place) or whether it is summer or winter (time).” |