Jenny likes chocolates.One day,a friend offers her a chocolate bar and she is extremely happy on receiving it.As the day progresses,many other people also buy her chocolate.As she gets more and more chocolates,her excitement on receiving each bar is seen to gradually lessen.Which economic principle is reflected in this example?

Question

Quizplus · Accepted Answer

This example reflects the economic principle of diminishing marginal benefit, which states that as a person receives more and more of a good, the additional benefit or utility they receive from each additional unit will begin to decrease. In this case, Jenny's excitement on receiving each chocolate bar gradually lessens as she receives more of them. The other options, such as the Law of Equi-Marginal Utility and the Law of Increasing Willingness to Pay, do not accurately describe this situation.

Jenny Likes Chocolates