Please help me reply to these two posts:

Post 1

The concept of diminishing marginal utility suggests that as a person consumes more units of a particular good or service, the additional satisfaction or utility derived from each additional unit tends to decrease (Krugman & Wells, 2020).

Receiving Favorite Pizza for a Month:

• On the first day: My excitement level would likely be high since it's an unexpected surprise and I can enjoy my favorite pizza without any cost or effort. The marginal utility of receiving the first pizza would be significant.
• On the 10th day: My excitement would start to diminish. While I still enjoy the pizza, the marginal utility of each additional pizza decreases as the novelty wears off and I become accustomed to having it regularly.
• On the 30th day: By this point, my excitement would likely have significantly diminished. I would have grown tired of eating pizza every day and the marginal utility of each additional pizza would be very low, possibly even negative.

Winning Free Gasoline for a Year:

• On the first day: My excitement level would be very high since realizing the cost savings and convenience of not having to worry about fuel expenses. The marginal utility of receiving free gasoline on the first day would be substantial.
• On the 10th day: My excitement would still be high, but it might start to decline a bit. While I appreciate the cost savings, the marginal utility of each additional tank of free gasoline may decrease as it becomes more routine and expected.
• On the 30th day: My excitement would likely diminish some but still very happy to receive the gift of free gas! I have probably become accustomed to the convenience of free gasoline and the marginal utility of each additional tank would be lower than during the initial days.

The nature of the items and their consumption patterns are what distinguish the pizza and gasoline situations. Pizza is a consumable that should only be eaten once; doing so may make you feel satiated and reduce your enjoyment. The long-term usefulness of gasoline, on the other hand, includes things like driving a car for transportation. The nature of the items and their consumption habits have a role in determining the pace of declining marginal value, yet the enthusiasm for both situations may wane with time.

Two items that have different diminishing marginal utility for me would be listening to my favorite song on repeat during all my car rides and having my children sweep the floor as their chore. Both are great but after time my appreciation for both would decrease. I would most likely get to a point where I would rather drive in silence than listen to the same song again, even though it was my favorite. As for the children picking up the extra chore, my appreciation would slowly decrease. I do think I will always have a high level of excitement for this one because I do not enjoy vacuuming.

Reference:

Krugman, P., & Wells, R. (2021).Microeconomics (6th ed.).Macmillan Learning.

Post 2

Hi Everybody,

If I was selected by my favorite pizza company to have my favorite pizza delivered to my home and ready to eat, for lunch and dinner every day for the next month, on the first day I would be excited, it's my favorite pizza. On the 10^th day, I would be tired of pizza, but I would pass it out to strangers and family members. On the 30^th day, I wouldn't want the pizza anymore at all, I would be completely tired of it. My excitement would be completely gone, and I probably will feel sick after gaining about 20 pounds.

If my favorite national brand gasoline company informs me that I have won free gasoline, as much as I want, from any of their gas stations, anywhere in the country every day for a year I would be extremely excited on the first day. On the 10^thday my excitement will still be there I would be taking road trips knowing I don't have to worry about paying for gas. On the 30^thday, I would still have the same excitement from the first day due to the fact I don't have to pay expensive gas prices.

What makes the two scenarios different is eating pizza for a whole month straight can add about 20 pounds. After 30 days you most likely wouldn't want pizza anymore for a long time. Now with gas, anyone who drives would be happy all year-round cause gas is expensive, and a lot of money would be saved. This leaves more money for bills and road trips without worrying about gas. While everyone else is complaining about how high their gas prices are, A person with the year of gas will be set.

My two examples would be soda and shoes. According to Krugman, P. & Wells, R. (2020), diminishing marginal utility is "the more of a good or service you consume, the closer you are to being satiated."

If my favorite soda brand told me I won a gift card that allows me to get this soda for free for a month every time I go to the store, on the first day I would be excited like I got my favorite soda for free. On the 10^th day, I would be happy but not as much as the first day. On the 30^th day, I would be completely tired of the soda, and I doubt I will buy it any time after.

If my favorite shoe brand told me, I won free shoes every week for a month on the first day I would be overly excited. On the 10^th day, I would still be excited, and I would have 10 new pairs of shoes from my favorite shoe brand. On the 30^th day, I would still be as excited as I was on the first-day cause now, I have a whole shoe collection of my favorite brand.

What makes the two scenarios different is with the soda you would easily get tired of drinking it for so long so your excitement would go down. But with shoes, your excitement would stay high because not only do you have over 20 pairs of new shoes but they are also from your favorite shoe brand.

Krugman, P., & Wells, R. (2020). Microeconomics (6th ed.). Macmillan Higher Education. https://purdueuniversityglobal.vitalsource.com/books/

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