The correct option for the question "Utility of a commodity means?" is D. satisfaction derived from the product of commodity. Detailed Explanation

1. Understanding Utility:
2. In economics, "utility" refers to the satisfaction or pleasure that a consumer derives from consuming a good or service. It is a subjective measure, meaning it varies from person to person based on their preferences, needs, and circumstances.
3. Why Option D is Correct:
4. Option D states that utility is the "satisfaction derived from the product of commodity." This aligns perfectly with the economic definition of utility. When consumers purchase and consume a commodity, they do so with the expectation that it will provide them with satisfaction or fulfill a need. The greater the satisfaction derived from the consumption of a commodity, the higher its utility.
5. Why Other Options are Incorrect:
6. Option A: its usefulness: While usefulness is related to utility, it does not capture the full essence of what utility means in economics. Usefulness refers to the practical application of a commodity, but utility specifically focuses on the satisfaction or pleasure derived from it. Therefore, this option is too vague and does not encompass the subjective nature of utility.
7. Option B: power to satisfy a want: This option is somewhat close to the correct definition but is still not precise. The "power to satisfy a want" implies that the commodity has the ability to meet a need, but it does not explicitly mention the satisfaction aspect. Utility is more about the actual satisfaction experienced by the consumer rather than just the potential to satisfy a want.
8. Option C: price of the commodity: This option is entirely incorrect. Price is a monetary measure of a commodity's value in the market and does not relate to the satisfaction derived from it. Utility is a qualitative measure, while price is quantitative. They are related in that higher utility can lead to a higher willingness to pay, but they are fundamentally different concepts.

Common Pitfalls

• Confusing Utility with Usefulness: Many students confuse the general usefulness of a commodity with the specific economic concept of utility. Remember, utility is about satisfaction, not just practical application.
• Overlooking Subjectivity: Utility is subjective; what provides high utility for one person may not do so for another. Always consider individual preferences when discussing utility.
• Mixing Up Price and Utility: Price is not an indicator of utility. A high price does not necessarily mean high utility; it could be due to scarcity or demand factors.

Revision Summary

• Utility refers to the satisfaction or pleasure derived from consuming a good or service.
• The correct answer is D: satisfaction derived from the product of commodity.
• Options A and B are related but do not fully capture the essence of utility.
• Option C is incorrect as it confuses utility with price, which are different concepts.

Understanding these distinctions will help you grasp the concept of utility more effectively in your economics studies.