I like ice cream, but after eating homemade ice cream last night, I want to have something else for dessert today. This statement most clearly reflectsA) the budget constraint.B) consumer irrationality.C) the second law of demand: price elasticity increases with time.D) the law of diminishing marginal utility.

Question

I like ice cream, but after eating homemade ice cream last night, I want to have something else for dessert today. This statement most clearly reflectsA)  the budget constraint.B)  consumer irrationality.C)  the second law of demand: price elasticity increases with time.D)  the law of diminishing marginal utility.

Melvin Perry · Accepted Answer

Final Answer : D, Explanation :  The statement reflects the law of diminishing marginal utility, which suggests that as a person consumes more of a good, the additional satisfaction from consuming an additional unit decreases. After having ice cream, the person desires a different dessert, indicating decreased satisfaction from consuming more ice cream.

Definitions

Learning Objectives

Learning Objectives

Related questions