After eating six chocolate candy bars in ten minutes, Mia says, "You would have to pay me to eat another chocolate candy bar!" This statement best illustrates
A) the law of demand.
B) the substitutability among goods.
C) the law of diminishing marginal utility.
D) that chocolate candy bars are an inferior good.

Question

Quizplus · Accepted Answer

Mia's statement illustrates the law of diminishing marginal utility, which suggests that as a person consumes more of a good, the additional satisfaction (utility) gained from consuming each additional unit decreases. After eating six candy bars, Mia's utility from eating another is so low that she would need to be compensated to eat more.

After Eating Six Chocolate Candy Bars in Ten Minutes, Mia