"I like ice cream, but after eating homemade ice cream last night, I want to have something else for dessert today." This statement most clearly reflects
A) the budget constraint.
B) consumer irrationality.
C) the second law of demand: Price elasticity increases with time.
D) the law of diminishing marginal utility.

Question

Quizplus · Accepted Answer

The statement reflects the law of diminishing marginal utility, which suggests that as a consumer consumes more units of a good, the satisfaction generated by each additional unit decreases. In this case, the consumer has already consumed ice cream and therefore may not experience the same level of satisfaction if they were to consume it again. Therefore, they are looking for something else to satisfy their dessert craving.

"I Like Ice Cream, but After Eating Homemade Ice Cream