State the following statement is True or False: Utility is the basis

1.	State the following statement is True or False: Utility is the basis of demand.OptionsTrueFalse
Answer» 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.

State the following statement is True or False: Utility is the basis of demand.OptionsTrueFalse

Answer»

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.

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