Final answer:
The situation that is consistent with the law of diminishing marginal utility is when consuming more of a good leads to decreased satisfaction from each additional unit, such as José valuing his first T-shirt at 22 utils and the fourth one at only 18 utils.
Step-by-step explanation:
The situation consistent with the law of diminishing marginal utility is when consuming more of a good leads to a decrease in the satisfaction derived from each additional unit. This concept is fundamental in understanding consumer behavior and plays a significant role in the field of economics, specifically when analyzing how individuals make consumption decisions. The law of diminishing marginal utility suggests that as a consumer receives more of a good or service, the additional (marginal) utility or satisfaction that they obtain from each subsequent unit decreases.
An example would be José, who values his first T-shirt at 22 utils because it's his favorite, but the fourth T-shirt, used only when necessary, provides only 18 utils. This diminishing additional utility showcases why we rarely make all-or-nothing choices in life and consumption.