The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-The shorter the period of time being considered, the less rapidly will diminishing marginal utility set in.

Question

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3
 
-The shorter the period of time being considered, the less rapidly will diminishing marginal utility set in.

Quizplus · Accepted Answer

Diminishing marginal utility tends to set in more rapidly with shorter periods of time, as the initial satisfaction or utility gained from consuming a good or service decreases faster when consumption is concentrated in a shorter period.

The Below Figure Shows the Various Combinations of the Goods