Question

law of diminishing marginal utility​

Answer 1

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Answer 2

Your Answer:-

Statment Of The Law :-

The Law of Diminishing Marginal utility states that as the amount consumed of a commodity increases, the utility derived by the consumer from additional units (marginal utility) goes on decreasing. A consumer pays a price which is equal to the marginal utility of the commodity. Therefore, a utility-maximising consumer will purchase a large amount of a commodity only when its price falls because the marginal utility from additional units falls. It satisfies tha Law of Demand which states that other things remaining the same, price of a commodity increases then the demand will decrease and when the price decreases the demand for the commodity will increase.

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Note:-

The more of a commodity we consume the total utility increases but it's marginal utility decreases.

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Definition of Marginal utility:-

Marginal utility is the Satisfaction derived from the consumption of one additional unit of a commodity.

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Answered by :-

@MissInfinite