Source: Cobden Centre
by Dr. Frank Shostak
“Why do individuals pay higher prices for some goods versus other goods? The common reply to this is the law of supply and demand. But what is behind this law? To provide an answer to this question economists refer to the law of diminishing marginal utility. Mainstream economics explains this law in terms of the satisfaction that one derives from consuming a particular good. For instance, an individual may derive vast satisfaction from consuming one cone of ice cream. The satisfaction he will derive from consuming a second cone might also be large but not as large as the satisfaction derived from the first cone. The satisfaction from the consumption of a third cone is likely to diminish further, and so on.” (09/19/24)
https://www.cobdencentre.org/2024/09/why-people-pay-higher-prices-for-some-goods-versus-other-goods/