If, as a person consumes more and more of a good, each additional unit adds less satisfaction than the previous unit consumed, we are seeing the workings of
A)the law of demand.
B)the law of supply.
C)the law of increasing marginal opportunity cost.
D)the law of diminishing marginal utility.

Question

Quizplus · Accepted Answer

The situation described in the question is an example of the law of diminishing marginal utility, which states that as a person consumes more and more of a good, each additional unit adds less satisfaction than the previous unit consumed. This is because as a person's needs are satisfied, the marginal utility of each additional unit of the good decreases.

If, as a Person Consumes More and More of a Good