Chapter 5

The Law of Diminishing
Marginal Utility

Demand Curve Shifts with Changes in Income or in Other Goods’ Prices

Demand for Addictive Substances by Hard-Core Users

Demand for Addictive Substances by Casual Users

Because of Diminishing Marginal Utility, Consumer’s Satisfaction Exceeds What Is Paid

Total Consumer Surplus Is the Area Under the Demand Curve and Above the Price Line