Option C: Diminishing Marginal Utility
Think of a good or service that you like. Answer the following:
Do you experience diminishing marginal utility when you consume more of this good? Explain how this manifests itself (or explain why it doesn’t).
How does diminishing marginal utility affect your consumption of this good? How does marginal cost?
When you consume more of this good, do you notice the income effect getting stronger or weaker? Explain why this might be the case.