Explain the law of diminishing marginal utility. How does it ...

[mpobi80]

Explain the law of diminishing marginal utility. How does it relate to the shape of the demand curve?
 
  What will be an ideal response?

Question 2

What is price discrimination? Give examples of price discrimination.
 
  What will be an ideal response?

[smrerig]

Answer to Question 1

The law of diminishing marginal utility states that each additional unit of a good consumed provides less and less additional satisfaction. Therefore, the amount that a person will be willing to pay for a product will fall as more of the product is consumed. This is one reason why demand curves slope downward.

Answer to Question 2

Price discrimination is the practice of selling different units of a good or service for different prices. For example, airlines' customers pay different prices for the same trip, pizzerias charge a lower price for the second pizza bought, or Microsoft charges a lower than regular price when it sells its Office software to students.

[mpobi80]

Thanks for the timely response, appreciate it

[T4T]

Excellent