Refer to the figure below. For Jeff, the consumption of movies reflects the law of:
A)demand.
B)diminishing marginal utility.
C)total utility maximization.
D)marginal utility maximization.

Question

Refer to the figure below. For Jeff, the consumption of movies reflects the law of: 
A)demand. 
B)diminishing marginal utility. 
C)total utility maximization. 
D)marginal utility maximization.

Quizplus · Accepted Answer

Jeff's consumption of movies demonstrates the law of diminishing marginal utility, which states that as an individual consumes more and more of a particular good, the utility or satisfaction derived from each additional unit of the good decreases. This is indicated by the decreasing marginal utility curve in the figure. The other options (demand, total utility maximization, and marginal utility maximization) are not supported by the information given in the figure.

Refer to the Figure Below