ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the total utility decreases with each additional unit consumed.
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the additional satisfaction he/she receives increases with each unit.
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the additional satisfaction he/she receives decreases with each unit.
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None of the above
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Detailed explanation-1: -The law of diminishing marginal utility is a law of economics that states that as your consumption increases, the satisfaction you derive from each individual unit decreases.
Detailed explanation-2: -Most goods provide diminishing marginal utility. According to the law of diminishing marginal utility, as the consumption of good increases the additional amount of happiness the good provides the consumer decreases.
Detailed explanation-3: -The law of diminishing marginal utility means that as you use or consume more of something, you will get less satisfaction from each additional unit of that thing.
Detailed explanation-4: -The law of diminishing marginal utility holds that as we consume more of an item, the amount of satisfaction produced by each additional unit of that good declines. The change in utility gained from utilizing an additional unit of a product is known as marginal utility.
Detailed explanation-5: -Utility measures the satisfaction an individual receives from the consumption of a good or service. Total utility measures the total satisfaction from a specific quantity of goods or services.