If the price of steak rises, a consumer who had been maximizing his or her utility before will buy less steak because its "marginal utility to price ratio is now lower than for other items."
<h3>What is
marginal utility?</h3>
In economics, marginal utility is the optimum quality or benefit (utility) which a buyer receives by purchasing an additional units of a product or service.
Some key features regrading the marginal utility are-
- The concept means that the utility and benefit of an extra unit of a product to a consumer is proportional to the quantity of units of such a product he currently owns.
- The given example shows marginal usefulness.
- The marginal value of one piece of bread provided to a family of seven will be considerable, because the family will be less hungry, as well as the difference between 7 and 8 is proportionally significant.
- A extra bread slice supplied to a family with 30 slices, on the other hand, has less marginal utility so because difference among 30 & 31 is proportionally lower and the family's hunger has already been satisfied.
- Thus, as a consumer of a product purchases further and more of the commodity, his marginal utility drops until he has no need for any extra units at all.
- The marginal utility then is equal to zero.
To know more about the marginal utility, here
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plastic wraps, food bags ,and airtight containers are the best choice for storing food in your refrigerator.
Explanation:
leaving stored food in the fridge without it being covered may result in it growing mold or drying out.
