Question

Explain the types of utility.

Answer 1

Types of Utility

1. Form utility: If the physical form of a commodity is changed, its utility may increase. Eg. Cotton increases, if it is converted into clothes.
2. Place utility: If a commodity is transported from one place to another, its utility may increase. Eg. If rice is transported from Tamilnadu to Kerala, its utility will be more.
3. Time utility: If the commodity is stored for future usage, its utility may increase. Eg. Agricultural commodities like Paddy, Wheat, etc. are stored for the regular uses of consumers throughout the year.