In previous blog i had written about ''INCOME ELASTICITY OF DEMAND & IT'S TYPES''. Well now i am going to discuss different topic, i.e, ''DIMINISHING MARGINAL UTILITY''.
LOW OF DIMINISHING MARGINAL UTILITY, was first given by Prof. Gossen as "Low of satisfaction". later on, it defined by Dr. Alferd Marshal. This low also known as Gossen 1st low then after it known as Low of Diminishing Utility.
Diminishing marginal utility says, when a consumer consumes any product continuously, satisfaction derive from additional unit decreases.
In simple words we can say, when we keep consume a particular product, our satisfaction start goes down.
GRAPHICAL REPRESENTATION
According to the this graph of the table, when we consume 1st unit of commodity (U1) we get maximum satisfaction at (M1) , when we consume 2nd unit of same commodities (U2), marginal utility decreases to (M2). So on a point marginal utility become zero and further goes down negative. so we can say Marginal utility diminishing with the additional consumption.
In simple words we can say, when we keep consume a particular product, our satisfaction start goes down.
GRAPHICAL REPRESENTATION
According to the this graph of the table, when we consume 1st unit of commodity (U1) we get maximum satisfaction at (M1) , when we consume 2nd unit of same commodities (U2), marginal utility decreases to (M2). So on a point marginal utility become zero and further goes down negative. so we can say Marginal utility diminishing with the additional consumption.
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