The Law of Diminishing Marginal Utility ECO 204 Principles of Microeconomics Economic Ut

The Law of Diminishing Marginal Utility  ECO 204 Principles of Microeconomics  Economic Utility is defined as the “satisfaction a consumer receives from consuming a good or service” (Amacher& Pate, 2019). This definition is derived from the concept of usefulness which helps to define economically how useful a good or service will be to the consumer. Utility has a major influence on the demand and the price of goods and services. There are two variances of utility which are, total utility and marginal utility. Total Utility is the amount of total satisfaction that a consumer gets from all a good or service. Marginal Utility is the change in satisfaction that occurs when consuming one more or one less unit. Both are important for understanding utility and demand.   Understanding the relationship between Total Utility (TU) and Marginal Utility (MU) is important to the overall picture