This law states that as the consumption increases the marginal utility derived from it from each unit decreases.
It is the change in the utility as an additional unit is consumed. It describes the amount of satisfaction and happiness.
It is the incremental increase in utility that results from consumption of one additional unit.
For example:-
A person went to a ice-cream parlour.
From a very long time the person was thinking to eat black current flavour ice-cream.
Out of happiness he ordered five ice-creams.
After having 3 ice creams he was not able to have more.
It is because of the Diminishing Marginal utility.
The satisfaction level has reached and he don't want to have more of that
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