{"id":3402,"date":"2021-07-03T23:44:26","date_gmt":"2021-07-03T18:14:26","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=3402"},"modified":"2025-10-07T12:36:23","modified_gmt":"2025-10-07T07:06:23","slug":"types-of-utility","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/types-of-utility\/","title":{"rendered":"Types of Utility (6 Types of utility in Economics) | Micro Economics"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d0abc66ee80\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d0abc66ee80\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/scholarsclasses.com\/blog\/types-of-utility\/#Types_of_Utility\" >Types of Utility<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/scholarsclasses.com\/blog\/types-of-utility\/#What_are_the_types_of_utility_in_Economics\" >What are the types of utility in Economics?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/scholarsclasses.com\/blog\/types-of-utility\/#Meaning_of_Utility\" >Meaning of Utility.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/scholarsclasses.com\/blog\/types-of-utility\/#The_following_are_some_of_the_different_types_of_utility\" >The following are some of the different types of utility:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Types_of_Utility\"><\/span><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-black-color\">Types of Utility<\/mark><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_types_of_utility_in_Economics\"><\/span>What are the types of utility in Economics?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_Utility\"><\/span>Meaning of <a href=\"https:\/\/en.wikipedia.org\/wiki\/Utility\" data-type=\"link\" data-id=\"https:\/\/en.wikipedia.org\/wiki\/Utility\" target=\"_blank\" rel=\"noopener\">Utility<\/a>.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>A consumer usually decides his demand for a commodity based on the utility (or satisfaction) that he derives from it.<\/p>\n\n\n\n<p>What is utility? <br>Utility is the capacity of a commodity to satisfy human wants. In other words, utility is the want satisfying power of a good. The more the need for a commodity or the stronger the desire to have it, the greater the utility derived from the commodity.<\/p>\n\n\n\n<p>The utility is subjective.<\/p>\n\n\n\n<p>Different individuals can get different levels of utility from the same commodity. For example, someone who likes chocolates will get a much higher utility from chocolate than someone who is not so fond of chocolates,<\/p>\n\n\n\n<p>Also, the 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).<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/microeconomic-definition\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/microeconomic-definition\/\" target=\"_blank\" rel=\"noreferrer noopener\">Microeconomic Definition | Historical Review of Microeconomics<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/scope-of-microeconomics\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/scope-of-microeconomics\/\" target=\"_blank\" rel=\"noreferrer noopener\">Scope Or Nature of Microeconomics<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/exceptions-to-the-law-of-diminishing-marginal-utility\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/exceptions-to-the-law-of-diminishing-marginal-utility\/\" target=\"_blank\" rel=\"noreferrer noopener\">Exceptions of Law of Diminishing Marginal Utility<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/criticism-of-law-of-diminishing-marginal-utility\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/criticism-of-law-of-diminishing-marginal-utility\/\" target=\"_blank\" rel=\"noreferrer noopener\">Criticism of Law of Diminishing Marginal Utility<\/a><\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"512\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/07\/Types-of-Utility-2-1024x512.png\" alt=\"Types of Utility\" class=\"wp-image-3424 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/07\/Types-of-Utility-2-1024x512.png 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/07\/Types-of-Utility-2-300x150.png 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/07\/Types-of-Utility-2-768x384.png 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/07\/Types-of-Utility-2.png 1200w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/512;\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_following_are_some_of_the_different_types_of_utility\"><\/span><strong>The following are some of the different types of utility<\/strong>:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">1) Form utility: <br><\/span><\/strong>When utility is created due to a change in the shape or structure of existing material, it is called form utility.<br>For example, toys made of clay, furniture from wood, etc.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">2) Place utility :<br><\/span><\/strong>When the utility of a commodity increases due to a change in its place, it is called place utility. For example, woolen clothes have more utility in cold places than in warm places. Transport creates place utility.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">3) Service utility: <br><\/span><\/strong>Service utility arises when personal services are rendered by various professionals. For example, the services of doctors, teachers, lawyers, etc.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">4) Knowledge utility: <br><\/span><\/strong>When a consumer acquires knowledge about a particular product, it is called knowledge utility. For example, the utility of a mobile phone or a computer increases when a person knows about its various functions.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">5) Possession utility: <br><\/span><\/strong>Possession utility arises when the ownership of goods is transferred from one person to another. For example,<br>transfer of goods from the sellers to the buyers.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">6) Time utility:<br><\/span><\/strong>When the utility of a commodity increases with a change in its time of utilization, it is called time utility. For example, a student has more utility for textbooks during examinations than in vacations. Time utility is also observed when goods are stored and used at a time of scarcity. For example, Blood bank.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/importance-of-law-of-diminishing-marginal-utility\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/importance-of-law-of-diminishing-marginal-utility\/\" target=\"_blank\" rel=\"noreferrer noopener\">Importance of Law of Diminishing Marginal Utility<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/utility-in-economics-meaning-concepts\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/utility-in-economics-meaning-concepts\/\" target=\"_blank\" rel=\"noreferrer noopener\">Utility in Economics (Concepts of Utility)<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/features-of-utility\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/features-of-utility\/\" target=\"_blank\" rel=\"noreferrer noopener\">Features of Utility<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/types-of-utility\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/types-of-utility\/\" target=\"_blank\" rel=\"noreferrer noopener\">Types of Utility<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":3424,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[1646],"class_list":["post-3402","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-misc","tag-types-of-utility"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/3402","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=3402"}],"version-history":[{"count":17,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/3402\/revisions"}],"predecessor-version":[{"id":39044,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/3402\/revisions\/39044"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/3424"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=3402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=3402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=3402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}