Last week, me and my friends went
to a mall for shopping, during
shopping we felt hungry, so we went to pizza hut
which was inside
the mall, we ordered pizzas, after eating first piece of pizza
I felt
very much satisfied because i was
hungry that time, after eating
second piece of pizza the satisfaction level was
little less in
comparison to the first pizza because my hunger level was
getting down, when I was eating third pizza I started losing my interest of
eating pizza because my stomach got full. When I stopped eating pizza, my
friends forced me to eat another piece and because my stomach was full and i
was not at all interested in eating another one, so I puked.
The above example shows the law of diminishing
marginal utility
where every additional unit of my consumption decreases my
level of
satisfaction.
“Diminishing marginal utility
describes the position of marginal utility in different level of our
consumption where with the consumption of every additional unit, marginal
utility decreases and at the point where our total utility started decreasing
marginal utility becomes negative.”
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