The most common pattern for marginal utility is
diminishing marginal utility
a budget constraint model
a long-term perspective theoretical model
substitute consumption
The correct answer and explanation is :
The correct answer is diminishing marginal utility.
Explanation:
In economics, the concept of marginal utility refers to the additional satisfaction or benefit that a person receives from consuming an additional unit of a good or service. The principle of diminishing marginal utility suggests that as a person consumes more units of a good or service, the additional satisfaction or benefit derived from each successive unit decreases.
This is one of the foundational concepts in consumer theory, which deals with how individuals make choices regarding consumption based on their preferences and available resources. Diminishing marginal utility is a critical principle because it helps explain many behaviors related to consumption. For instance, when a person is thirsty, the first glass of water they drink provides substantial satisfaction, but as they continue drinking more water, each subsequent glass provides less satisfaction than the one before. This occurs because the initial need or desire is satisfied, and additional consumption brings less added benefit.
The law of diminishing marginal utility is reflected in the downward-sloping demand curve in microeconomics. As the price of a good decreases, consumers are willing to buy more units, but each additional unit provides less utility than the previous one. This phenomenon also helps explain the principle of optimal consumption, where consumers aim to allocate their limited resources (such as money) in a way that maximizes their total utility.
The other options mentioned—a budget constraint model, a long-term perspective theoretical model, and substitute consumption—are related concepts in economics, but they do not directly address the idea of diminishing marginal utility. For example, a budget constraint model focuses on the limitations a consumer faces regarding income and the prices of goods, but it doesn’t specifically explain the decrease in utility with increased consumption. Similarly, substitute consumption refers to the idea that consumers may switch to alternatives when the price of a good rises, but it doesn’t directly relate to diminishing utility.
In conclusion, the most common pattern for marginal utility is diminishing marginal utility, which explains why consumers derive less satisfaction from consuming additional units of a good or service.