If a university cafeteria changes from selling each food item separately to offering all-you-can-eat meals for one low price,one would expect that the marginal utility of the last food item consumed in the cafeteria by the typical student would decrease since more food is now likely to be consumed by students who eat a meal in the cafeteria.

Question

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With all-you-can-eat meals, students are likely to consume more food than they would if they were buying each item separately. This means that the marginal utility of the last food item consumed will decrease, as students are likely to continue eating even if they are not receiving as much additional satisfaction from each additional food item.

If a University Cafeteria Changes from Selling Each Food Item