An individual is faced with a choice of buying housing in one of two markets; the private market where he may buy any amount of housing he pleases at the going price, and the public housing market where he will be offered, on a take-it-or-leave-it-basis, a particular amount of housing at a price lower than that which he would pay for it on the private market. Will he necessarily choose the public housing? If so, may we conclude that he will consume more housing than he would have purchased had he been forced to buy it on the private market? (With thanks to Dr Leslie Rosenthal.)

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Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.