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What Does "Diminishing Marginal Utility" Mean

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What does "diminishing marginal utility" mean?


Definitions:

Equilibrium Quantity

The supply and demand for goods or services at the price point where equilibrium is achieved in a market.

Price

The measure of money anticipated, obligatory, or tendered in payment towards an item.

Equilibrium Price

The cost at which the amount of a product or service that consumers want to buy matches the amount that producers are willing to sell.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where market supply and demand balance.

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