ROEL B.

CABABAO BSBA- 2A
BAC 1 MIDTERM ASGMT NO 1
THEORY OF CONSUMER BEHAVIOR

1. What does the picture imply?

Ans:
The picture implies the Law of Diminishing Marginal Utility and from what I
have seen in the given photo for me it tells us that the more we consume something, the
less satisfaction we will get from each additional unit of it. Furthermore, if you're
starving and you want to eat pizza, the pizza offers pretty high value. But the more you
eat the pizza, the less hungry you become and it makes each additional slice of pizza less
valuable.

2. What do you think is the concept being demonstrated in the picture?

Ans:
The concept that is demonstrated in the given picture is the Diminishing Marginal
Utility. It is the concept of diminishing marginal utility simply because it refers to the
phenomenon that each additional unit of gain leads to an ever-smaller increase in
subjective value.