How much of a good is good?

The more of a good a person consumes during a given period of time, the less the additional utility derived from an additional unit of that good provided all other factors remain unchanged. In other words, over time the utility factor or relevance of any good when it is consumed successively diminishes.

For example a certain food item may satisfy the taste buds for the first time very well. If the same food item is consuming the second time, the satisfaction of consumption will be less than the satisfaction gained from the first time.

It can be also be found very evident in the fact that rich people tend to spend more carelessly. When a person grows rich, the person tends to spend more money on luxury goods.

There are other factors which determine at what rate the marginal utility of a product diminishes. The unique behaviour of a consumer dictates the rate of marginal utility. The shorter the time period in which a good is consumed also result in a quick fall in marginal utility.