Question

Consumers are always willing to pay the most for the very first unit, and pay less for each additional unit. This idea is called:
O the income effect
O the substitution effect
O diminishing marginal utility
O desire

Answer 1

Answer:

The answer is diminishing marginal utility

Explanation:

Economists have identified a concept known as the law of diminishing marginal utility. It describes how the first unit of consumption of a good or service carries more utility than later units. ... Marginal utility is useful in explaining how consumers make choices to get the most benefit from their limited budgets