explain law of diminishing marginal utility
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# Law of diminishing marginal utility states that as we consume more and more units of a commodity the utility derived from each successive unit goes on decreasing.
# In making choices, most people spread their income over different kinds of goods. People prefer variety of goods because consuming more and more of any one commodity reduces the marginal satisfaction derived from further consumption of the same good. This law expresses an important relationship between utility and the quantity consumed of a commodity.
eg: Suppose your father has just come from work and you offer him a glass of juice. The first glass of juice will give him great satisfaction. The satisfaction with the second glass of juice will be relatively lesser. With further consumption, a stage will come, when he wouldn't need any more glass of juice, ie; when the marginal utility drops to 0. After that point, if he is forced to consume even one more glass of juice, it will lead to disutility; the marginal utility drops to negative. Such a decrease in satisfaction with consumption of successive units occurs due to 'Law of diminishing marginal utility'.
# The law of diminishing marginal utility has universal applicability and applies to all goods and services. This law was first given by a German economist H.H. Gossen. That's why, it is also knowns as 'Gossen's first law of consumption'.