Marginal Utility Analysis

Utility is a measure of the satisfaction that we get from purchasing and consuming a good or service

Marginal utility and the demand curve for a product

A fall in marginal utility means that the consumer is getting less extra satisfaction from each subsequent unit consumed. We can infer from this that a rational consumer will not be willing to pay as much money for later units and therefore their willingness to pay will drop. This is one reason why a conventional demand curve for a normal good has an inverse relationship between price charged and quantity demanded.