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The graph makes it clear that person derives much more utility from the first units of water than the first units of diamonds (the first units of water keep the person from dehydrating and thus have a much higher marginal utility). The person, however, is consuming 63 units of water and is only
486:* 20:45, 27 April 2006 ] 1200×900 (35,166 bytes) <span class="comment">(==Description== This graph shows the ] (measured in ]) of ] and ] as a function of the amount consumbed. As a person consumes (buys) more and more diamonds or water each additional unit of diamonds)</span>
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as a function of the amount consumed. As a person consumes (buys) more and more diamonds or water each additional unit of diamonds or water results in a lower marginal utility. This is phenomenon is known as the law of diminishing marginal utility.
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deriving 80 utils of utility for the last unit of water. Meanwhile, the person is consuming just 12 units of diamonds and is deriving 235 utils from the 12th diamond.
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for more information. If an SVG form of this image is available, please upload it and afterwards replace this template with
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as a function of the amount consumed. As a person consumes (buys) more and more diamon
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