After eating six chocolate candy bars in ten minutes, Jody 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

Jody's statement reflects the law of diminishing marginal utility, which states that as a person consumes more of a good, the additional satisfaction or utility from each additional unit of the good decreases. In this case, Jody has reached a point where the satisfaction from consuming additional chocolate candy bars has decreased to the point where she no longer wants to consume them, even if she were paid to do so. This is an example of diminishing marginal utility because the satisfaction Jody receives from each additional candy bar is decreasing to the point where it becomes negative.

After Eating Six Chocolate Candy Bars in Ten Minutes, Jody