After watching a movie,Alan chooses not to watch a second and goes for a walk instead.Economists could explain his choices using the concept of:
A) budget constraints.
B) diminishing marginal utility.
C) income effect.
D) substitution effect.

Question

Quizplus · Accepted Answer

The concept of diminishing marginal utility states that as we consume more of a good or service, the satisfaction we derive from each additional unit decreases. In this case, Alan may have reached a point where he no longer found watching another movie to be as enjoyable as going for a walk. Therefore, he chose to forgo the second movie in favor of a different activity.

After Watching a Movie,Alan Chooses Not to Watch a Second