Saturday, September 1, 2018

AN REAL LIFE EXAMPLE OF DIMINISHING MARGINAL UTILITY

LAW OF DIMINISHING MARGINAL UTILITY :

One day i went with 3 of my friends to have lunch at Barbeque Nation, a popular restaurant for tandoor cuisine. i initially thought of ordering biriyani along with other items like kebabs, tandoori, lababdars etc. that would roughly cost me around 800 per person. but there was a buffet meal offer of 1000 rupees that would offer the same items with sweet dishes. so, assuming that it was a better deal, i went for the buffet meal. i thought i would take biryani twice or thrice and take many kebabs since it was a buffet lunch. but i could not eat as much i was expecting. i had limited amounts of all items, and didn't want to go for the same item again, whether it was biriyani, or kebab or sweet dishes and desserts. this is a unique case of diminishing marginal utility. according to this law, successive consumption of a particular product diminishes its utility over period of time. as was in the case of the meal, i did not want to take biriyani for the second time since i was satisfied with the amount of biriyani taken in the first place. so was in the case of other tandoor items in the menu. this is a common feature of restaurants nowadays, as they know about the consumer's demands and tastes. they know customers will eat a limited amount of a food quantity after a certain limit, hence there will be minimum wastage of resources and the price of the buffet meal serves the purpose of collecting revenues for the producers. 

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