Utility:
The power of satisfaction obtained from the consumption of a product.
Diminishing marginal utility:
Diminishing marginal utility refers to the decrease in the demand of the product when the consumption of the good increases by the consumer.
Definition:
The additional benefit which a person derives from a given increase of his stock of a thing diminishes with every increase in the stock that he already has.
-Alfred Marshall
Ex:
If the consumer is hungry he wants to eat a chocolate he eats the first chocolate and gets more satisfaction but coming to the second chocolate his satisfaction decreases when compared to the satisfaction which he derived from the first one.If the consumption increases his satisfaction decreases.
The power of satisfaction obtained from the consumption of a product.
Diminishing marginal utility:
Diminishing marginal utility refers to the decrease in the demand of the product when the consumption of the good increases by the consumer.
Definition:
The additional benefit which a person derives from a given increase of his stock of a thing diminishes with every increase in the stock that he already has.
-Alfred Marshall
Ex:
If the consumer is hungry he wants to eat a chocolate he eats the first chocolate and gets more satisfaction but coming to the second chocolate his satisfaction decreases when compared to the satisfaction which he derived from the first one.If the consumption increases his satisfaction decreases.
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