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Unformatted text preview: Marginal Utility decreases with quantity The more you have, the less each extra one is valued Marginal Utility = TU . Consumpt ion Pepsi Utility Marginal Utility 10 1 10 5 2 15 4 3 19 3 4 22 2 5 24 1 st degree is positive 2 nd degree is negative Law of Diminishing Marginal Utility At some point, the next item is worth less than the one before Ex. collector it doesnt matter, they are all worth the same Holds true for most How much of each good is consumer going to Q S D $ Q S 1 D 1 $ D 2 S 2...
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