An economic concept that explains why Disney World charges more for the first day of admission than they do for each additional day is the law of
A) supply.
B) demand and supply.
C) diminishing marginal utility.
D) diminishing returns.
E) none of the above

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as an individual consumes more and more units of a product, the additional satisfaction or utility that they derive from each additional unit of the product decreases. In the case of Disney World, a person may be willing to pay more for the first day of admission because they highly value the experience of going to the park, but with each subsequent day of attendance, the value or satisfaction that they receive from attending may decrease, thus justifying lower prices.

An Economic Concept That Explains Why Disney World Charges More