When marginal utility declines as consumption increases,the consumer is experiencing
A) diminishing marginal utility.
B) the real-income effect.
C) marginal utility.
D) the substitution effect.
E) the consumer optimum.

Question

Quizplus · Accepted Answer

Diminishing marginal utility is the concept that as a consumer continues to consume a good or service, the additional satisfaction or utility they receive from each unit consumed decreases. This is often due to saturation or boredom with the good/service. As such, when marginal utility declines as consumption increases, the consumer is experiencing diminishing marginal utility.

When Marginal Utility Declines as Consumption Increases,the Consumer Is Experiencing