Which law in economics states that consumers have a threshold for how much of a product they will buy, even if they can afford to buy more?

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that a consumer will only buy so much of a product even when they can afford to buy more. For example, an avid gum consumer may readily buy a value package of gum containing 10 standard packs, but they're not going to go to a warehouse store and buy a flat of chewing gum even if it only costs $60, because (in this case) having that much gum is impractical.

Which Law in Economics States That Consumers Have a Threshold