Question

What happens when you consume the first mango? It tastes delicious, right? The second one is good? The third one and so on? You are barely interested in eating mangoes by this point. Why do you think this happens?

Answer 1

This happens because the additional utility or satisfaction obtained from each successive mango decreases. This is known as the principle of diminishing marginal utility. The first mango gives the most satisfaction, but every next mango gives a little less satisfaction than the previous one. As satisfaction decreases, the willingness to pay also falls.