Law of diminishing marginal utility:
It meant that if consumption increases initially it increases in marginal utility that then there will be decreasing in marginal utility . It will happens when there is difference shown in utility by consumption of additional unit and consumption is in large quantities,time will be in short period.
Eg: imagine you have gone to one bakery start eating sweets at first you have consumed 5 sweets and you feel tasty with satisfaction after that you take another 5 sweets then you feel very good with highly satisfaction after that again you consume another 5 sweets then you feel that good but it is little bit decreased one after that again you consumer 5 sweets then you feel that I am fully satisfaction I can't go further, it will be in short period of time.
So the more you consume your interest will be decreasing this is diminishing marginal utility.
Economics when applied to real life sounds beautiful. this blog is for those students who are discovering the different facets of economics applications and want to share their discoveries.
Saturday, August 4, 2018
LAW OF DIMINISHING MARGINAL UTILITY
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment