Final answer:
Marginal Utility is the change in total utility resulting from a unit change in consumption of a good or service, corresponding to the law of diminishing marginal utility.
Step-by-step explanation:
The change in total utility resulting from a unit change in the consumption of a good or service is called Marginal Utility.
This concept is crucial in understanding consumer behavior within the field of economics. As individuals consume more units of a good, such as slices of pizza, the utility of each additional slice tends to decrease according to the law of diminishing marginal utility. This law implies that while the first unit of a good consumed, say a slice of pizza, may bring a significant amount of satisfaction or utility, the subsequent units will bring progressively less utility. It's a reflection of a consumer's decreasing satisfaction as they consume more of the same good.
Understanding marginal utility helps in comprehending the choices consumers make when they are faced with a limited budget and how they allocate their resources among various goods to maximize their total utility.