The principle of diminishing marginal satisfaction explains why

Question

Quizplus · Accepted Answer

Diminishing marginal satisfaction suggests that as we consume more of a good or service, the satisfaction or utility we derive from each additional unit of consumption decreases. Therefore, future consumption tends to look more appealing than current consumption as our current incomes increase because we often reach a point where the satisfaction we could obtain from additional consumption is outweighed by the costs of obtaining it. This helps explain why people may not save more even as their incomes rise.

The Principle of Diminishing Marginal Satisfaction Explains Why