Question

Which statement best illustrates the concept of diminishing marginal utility? Multiple Choice

A. As one consumes more slices of pizza for lunch, one would be willing to pay a higher price for additional slices.
B. Some consumers will receive less satisfaction from consuming pizza than from consuming hamburgers.
C. A decrease in the price of slices of pizza will cause consumers to buy more slices for lunch, because they can afford to buy more.
D. A typical consumer will receive less satisfaction from corsuming the third slice of pizza for lunch than from the second slice.

Answer 1

Option D best illustrates diminishing marginal utility, stating that consumer satisfaction decreases with each additional consumed unit of a good, like the third slice of pizza offering less enjoyment than the second.

Step-by-step explanation:

The concept of diminishing marginal utility is best illustrated by option D: A typical consumer will receive less satisfaction from consuming the third slice of pizza for lunch than from the second slice. This principle asserts that as a person consumes more units of a good, the additional satisfaction (utility) gained from each subsequent unit decreases. Hence, after enjoying the first slice of pizza, which provides a high level of utility, every additional slice will bring progressively less satisfaction, illustrating the law of diminishing marginal utility.