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What is an example of the law of diminishing ma... - SS2 Economics The Law of Diminishing Marginal Utility Question

What is an example of the law of diminishing marginal utility?

A

A person buying a new car.

 

B

A person buying a new house.

C

A person eating pizza.

correct option: c

(If a person is hungry and eats a slice of pizza, they will derive a certain level of satisfaction from that first slice. However, if they continue to eat more slices of pizza, the level of satisfaction they get from each additional slice will diminish until they eventually reach a point where they feel full and derive no additional satisfaction from consuming more pizza)

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