Final answer:
As utility from additional units of a good decreases, the willingness to pay a higher price diminishes, reflecting the economic principle of diminishing marginal utility.
Step-by-step explanation:
The less utility you receive from a unit of a good, the lower the price you are willing to pay for it.
The concept in question is known as diminishing marginal utility, which is a principle within the field of economics. This principle states that as a person consumes more units of a good, the utility (satisfaction) gained from each additional unit decreases in comparison to previous units. For instance, the first slice of pizza you eat may bring you a great deal of pleasure, but by the fourth or fifth slice, the satisfaction you receive from each additional slice will likely be less than the first. Hence, you would not be willing to pay as much for the fifth slice as you did for the first. This is because the additional utility, or satisfaction, you gain from consuming additional units is decreasing. In economic terms, you value each additional unit less, and thus, your willingness to pay a higher price diminishes accordingly. When quantity demanded is high, the change in utility from consuming one additional unit is relatively small, capturing the essence of diminishing marginal utility.