Business Environment, 1st Edition by Pearson

Chapter 1: The Functioning of an Economy: Basic Concepts | 9 |

consumes a mango, he makes use of that fruit to satisfy his want.

In other words, he consumes the utility of that commodity. There is

a difference between the consumption of a perishable commodity

and a durable commodity. Perishable goods are single-use goods.

Once these are consumed, they are destroyed. Durable goods last

for a longer period. For example, the utility of a table that lasts

for ten years is available to a consumer for ten years. We consume

goods as well as services.

The goods and services satisfy the wants of a consumer and,

obviously, he is willing to pay a price for them. The use of free

goods and services does not come under consumption. We consume

air and ...