The Law of Diminishing Utility

1. Suppose you are working outdoors, mowing the lawn on the hottest day of the summer.You are extremely hot, perspiration is dripping from your forehead and you would love a cold beverage.Your dad brings you a drink.Fill in the table below as to what you feel each of these drinks in succession would be worth to you (in utils).
2. the first drink would be worth ____________________
3. the second drink would be worth _________________
4. the third drink would be worth ____________________
5. the fourth drink would be worth ___________________
6. the fifth drink would be worth _____________________
7. Probably long before you got to the fifth drink, the value of additional ones would have reached zero.State the law of diminishing utility.
8. Does the law of diminishing utility apply fully to the economic goods a person wants in general?Explain.
9. If you were a merchant, how could you best adjust to the law of diminishing utilty?
10. Draw a graph (quantity on the horizontal axis and utility on the vertical axis) illustrating the concept of diminishing utility.E.g., hamburgers for five year olds.
11. A chip company has a slogan, "I bet you can't eat just one".What is the flaw in this advertising slogan?