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Unformatted text preview: x The Marginal Utility of good X is the additional satisfaction gained by consuming one more unit of good X. x Diminishing Marginal Utility The more of one good consumed in a given period, the less satisfaction (utility) generated by consuming each additional (marginal) unit of the same good. Why do demand curves slope down? ONE reason: Since marginal utility falls with each additional (marginal) unit consumed, people are not willing to pay as much for each additional (marginal) unit. Marginal Utility x Total Utility x Page 63...
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This note was uploaded on 12/29/2011 for the course ECO 311 taught by Professor Willis during the Fall '10 term at SUNY Stony Brook.
- Fall '10