Diminishing Marginial Utility And Its Influence On The Demand Curve Flashcards
1
Q
What is total utility?
A
The amount of satisfaction a person derives from the actual amount of a product consumed.
2
Q
What is marginal utility?
A
The change in total utility from consuming a unit of a product.
3
Q
What is the law of diminishing marginal utility?
A
As consumption of a product is increased, the consumer’s utility increases, but at a decreasing diminishing rate.
