Which of the following describes a situation in which there would be
decreasing marginal utility?

A. Reducing consumption to save natural resources.
O
B. Buying a car to substitute for riding the bus.
O
C. Wearing used clothes instead of buying new clothes.
O
D. Ordering a second dessert when you're already full.
QUID

D. Ordering a second dessert when you're already full.

Explanation:

Marginal utility is an economic term that refers to the additional satisfaction derived from the consumption of an extra good or service.  Decreasing marginal utility is a concept the explains how satisfaction declines with the continuous consumption of a good or service beyond the optimal point. The law of diminishing or decreasing marginal utility observes that satisfactions increases at an increasing rate up to the optimal point. After the peak, satisfaction will ease and eventually turn negative.

Ordering for a second dessert when full does not result in any satisfaction. The individual needs are already met. The second dessert will not bring as much joy or enthusiasm as the first one.

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