+

Making predictions
Try to predict how much of a
given food item your partner can
consume in one sitting

Can we
consume an
unlimited
amount of
goods ?

The Law of
Diminishing Marginal

At the end of the lesson, students

should be able to
Define

terms related to utility

Analyze
Apply

the graph for marginal utility

the Law of Diminishing Marginal

Utility to wise consumer behavior

What is utility?
Level of
satisfaction
measured in utils

Consumption of Kisses Chocolates

KISSES
1
2
3
4
5
6
7

TOTAL UTILITY
4
8
11
13
13
10
6

Total Utility Curve on the

Consumption of Kisses
14
12
10
8
6
4
2
0

+
What do
you
observe in
the total
utility?

Marginal
Additional satisfaction
that a consumer
Utility

gets from consuming one more unit of the

Consumption of Kisses Chocolates

KISSES
1
2
3
4
5
6
7

TOTAL
UTILITY
4
8
11
13
13
10
6

MARGINAL
UTILITY

Consumption of Kisses Chocolates

KISSES
1
2
3
4
5
6
7

TOTAL
UTILITY
4
8
11
13
13
10
6

MARGINAL
UTILITY
4
4
3
2
0
-3
-4

Marginal Utility Curve on the

Consumption of Kisses
5
4
3
2
1
0
-1
-2
-3
-4
-5

14
12
10
8
6
4
2
0
-2

-4
-6

Describe the relationship

between consumption and
utility.

The Law of Diminishing Marginal

Utility
As the individuals consumption
of a commodity increases, the
marginal utility of each
additional unit decreases.
Therefore, total utility increases
at a diminishing rate.

How does the Law of

Diminishing Marginal Utility
affect...
PRODUCERS
CONSUMERS

Recapitulation
Keeping the Law of Diminishing Marginal Utility
in mind, how can we be more responsible
consumers?

Tips on Wise Consumption

crosswise, individual (Process, 10 points)

Based on the lessons we had on Consumer

Behavior, Consumer Rights, and the Law
of Diminishing Marginal Utility, list down
five tips on wise consumption which
you commit to follow.