Household Consumption Behaviour
Marginal Utility and Consumer Choice
is the satisfaction a consumer receives from consuming some
(TU) is the total satisfaction resulting from consumption of a
given commodity by a consumer.
(MU) is the additional satisfaction obtained by a consumer
from consuming one
additional unit of a commodity.
Law of Diminishing Marginal Utility
The utility that any consumer derives from successive units of a particular
product consumed over some period of time diminishes as total consumption
of the product increases, cet. par.
goes down with increasing consumption. E.g drinking cup of coffee.
You will less enjoy it while drinking extra cup one after other.