You participate in a taste test for a new protein supplement called "Kapow." You are given five consecutive one ounce vials of the supplement and after consuming each vial you are asked to note your reaction
You consume the first vial and your response is: "Hmmm, quite good!" After the second, you say, "Not bad at all." After the third, you note, "It's alright." and after the fourth you wince, "No more, the after-taste is getting to me. I need water." What economic principle does this scenario illustrate? Define the principle.
It illustrates the law of diminishing marginal utility which states that consumers experience diminishing additional satisfaction as they consume more of a good or service during a given period of time.
You might also like to view...
If there are many close substitutes available for a good, its elasticity of demand will be higher.
Answer the following statement true (T) or false (F)
The Fed is dependent upon government policy, as witnessed by its actions in the early and mid-1980s
Indicate whether the statement is true or false
In general, what does a labor union feel about productivity changes that shift the MRP curve to the right?
a. threatened b. unhappy c. delighted d. nothing e. angry
In the short-run, when output is zero,
A. fixed cost is zero. B. variable cost is zero. C. total cost is zero. D. All of the choices are correct.