This law explains human behaviour (Consumer behaviour) in relation to consumption of commodity.As a consumer consumes more and more of a commodity, the utility (satisfying power) derived by him from the every subsequent unit goes of falling (diminishing).
It is the experience of every consumer that as he goes on consuming a particular commodity ; each successive unit gives him lesser and lesser satisfaction.In other words, the total utility goes on increasing, but at diminishing rate.
It is the experience of every consumer that as he goes on consuming a particular commodity ; each successive unit gives him lesser and lesser satisfaction.In other words, the total utility goes on increasing, but at diminishing rate.
