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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

D. Law of supply

Answer: Option C

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Economics

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Related Questions on Economics

Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.