Vidyalelo
Commerce · Q313

Economics

Graduate and Post Graduate · Commerce · question 313

Q313

The second glass of lemonade gives lesser satisfaction to a thirsty biy, this is a clear case of

A.
Law of demand
B.
Law of diminishing returns
C.
Law of diminishing marginal utility
Answer
D.
Law of supply

Answer: Option C

Solution

Answer: Option C
Solution:
The second glass of lemonade gives lesser satisfaction to a thirsty boy, this is a clear case of Law of diminishing marginal utility. The law of diminishing marginal utility describes a familiar and fundamental tendency of human behavior.