Dave and Buster play two games of tennis,then decide to go have lunch.This type of decision making can be explained using the concept of:
A)the income effect.
B)the substitution effect.
C)diminishing marginal utility.
D)income maximization.

Question

Quizplus · Accepted Answer

Diminishing marginal utility explains that as individuals consume more of a good or service, the additional satisfaction or utility they gain from each additional unit decreases, leading them to stop or switch activities, like going for lunch after playing tennis.

Dave and Buster Play Two Games of Tennis,then Decide to Go