ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
a second copy of the daily newspaper.
|
|
|
a second drink of water when you’re thirsty.
|
|
|
a second pair of sneakers.
|
|
|
a second car.
|
Detailed explanation-1: -"Utility” is an economic term used to represent satisfaction or happiness. In simple terms, the law of diminishing marginal utility means that the more of an item that you use or consume, the less satisfaction you get from each additional unit consumed or used.
Detailed explanation-2: -Food is a common example of a good with diminishing marginal utility. Think of an apple, for example. If you’re starving, an apple offers pretty high value. But the more apples you eat, the less hungry you become-Making each additional apple less valuable.
Detailed explanation-3: -The main types of marginal utility include positive marginal utility, zero marginal utility, and negative marginal utility. Consumers often experience higher marginal utility when marginal cost is lower.
Detailed explanation-4: -Marginal utility is a measurement of the amount of satisfaction a consumer gets after consuming or purchasing an additional item. For example, if a customer at a watch shop purchased one watch, they might measure the marginal utility of purchasing a second watch.