My name is Sam Today I am going to tell you about what is Law of Diminishing Marginal Utility?

In a simple way

Before starting Law of diminishing marginal utility we should have to know that what is utility is all about

Utility = Satisfaction
Utility means 'satisfaction' of need or want.

So what is Law of Diminishing Marginal Utility Lets go through the example

Example Suppose Sid is so hungry and Suzy offers him 2 Mangoes after eating that Mangoes he satisfied but he want some more Mangoes to eat, then Suzy gives him some more Mangoes let say 4, he eaten that Mangoes too and again demand for more Mangoes then Suzy gives 2 more Mangoes and Sid eaten that Mangoes too then Suzy offers 2 more Mangoes to Sid but Sid said 'NO' but she insist him and Sid taken and trying to eat that 2 Mangoes Now he got problem in eating because he already satisfied his utility by consuming previous quantity if hell eat last 2 Mangoes the utility will go negative and hell vomit.

Law of Diminishing Marginal Utility implies if you'll consume more and more quantity of the commodity the next successive consumable utility will goes down.

Table for Law of marginal diminishing utility

Commodity Marginal Utility Rate

2 4 6 8

8 10 4 4

Increasing Rate

Constant Rate

12 14

0 -2

Diminishing Rate

This Graph has 3 stages :1. The Blue Line Indicates the growth rate of the utility 2. The Green Line indicates the constant rate of the utility . 3. The Orange Line Indicates the negative utility.

Marginal Utility

Commodity

The End :Thanks For Watching