The law of diminishing marginal utility says that as a person consumes more and more of a certain good, the addition to total satisfaction decreases. as a person's income increases, the satisfaction associated with each dollar spent decreases. as a person consumes more and more of a certain good, the additional satisfaction increases. as a person's income increases, the satisfaction associated with each additional dollar earned increa Assume that this law holds for Quincy with ice cream and pretzels. Quincy decides to eat less ice cream and more pretzels. As a result, Quincy's marginal utility of ice cream decreases, and his marginal utility of pretzels increases. Quincy's marginal utility of both ice cream and pretzels decreases. Quincy's marginal utility of both ice cream and pretzels increases. Quincy's marginal utility of ice cream increases, and his marginal utility of pretzels decreases.
The law of diminishing marginal utility says that as a person consumes more and more of a certain good, the addition to total satisfaction decreases. as a person's income increases, the satisfaction associated with each dollar spent decreases. as a person consumes more and more of a certain good, the additional satisfaction increases. as a person's income increases, the satisfaction associated with each additional dollar earned increa Assume that this law holds for Quincy with ice cream and pretzels. Quincy decides to eat less ice cream and more pretzels. As a result, Quincy's marginal utility of ice cream decreases, and his marginal utility of pretzels increases. Quincy's marginal utility of both ice cream and pretzels decreases. Quincy's marginal utility of both ice cream and pretzels increases. Quincy's marginal utility of ice cream increases, and his marginal utility of pretzels decreases.
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 2QFR
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Law of Diminishing Marginal Utility indicates that gains in satisfaction become smaller as successive units of a specific product are consumed. or satisfaction declines as a consumer acquires additional units of a given product.
meaning the more of that product the obtain, the less the want still more of it. For Example As a person consumes more and more chocolate the satifaction derived from each additional unit of chocolate consumed dimnishes.
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