Law of diminishing marginal utility

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Contents

1 Diminishing marginal utility and the demand curve
2 The equimarginal principle
3 Behavioural economics and the limitations of marginal utility theory

Diminishing marginal utility and the demand curve

This video explains the law of diminishing marginal utility and establishes a link between diminishing marginal utility and the individual and market demand curve.

The equimarginal principle

This video uses the equimarginal principle to explain how a rational consumer maximises utility within a given budget constraint.

Behavioural economics and the limitations of marginal utility theory

This video explains the limitations of marginal utility and why consumers do not always act rationally.