ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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you are willing to pay more for every succeeding slice of pizza you purchase.
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you are willing to pay the same price for every succeeding lsice of pizza you purchase.
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You will only purchase succeeding slices of pizza if they cost less.
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Each slice of pizza you buy gets smaller.
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Detailed explanation-1: -After you eat the second slice of pizza, your appetite is becoming satisfied. You’re not as hungry as before, so the second slice of pizza had a smaller benefit and enjoyment than the first. The third slice holds even less utility since you’re only a little hungry at this point.
Detailed explanation-2: -It means your marginal utility from purchasing pizza is positive. However, after eating the second piece you feel full, and you would not feel any better from eating the third piece. This means your marginal utility from eating pizza is zero. Moreover, you might feel sick if you eat more than three pieces of pizza.
Detailed explanation-3: -The law of diminishing marginal utility explains that as a person consumes an item or a product, the satisfaction or utility they derive from the product wanes as they consume more and more of that product. For example, an individual might buy a certain type of chocolate for a while.