"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 person consumes more of a good, the additional satisfaction from consuming an additional unit decreases. After having ice cream, the person desires a different dessert, indicating decreased satisfaction from consuming more ice cream.

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