Question

In July 2012, it cost $125 to purchase a ticket to visit the parks at Disneyland for one day. A five-day pass to the same parks cost only $290. Disneyland charges less for the additional days because ofa. diminishing marginal utility.b. the real-income effect.c. the substitution effect.d. marginal utility.e. the consumer optimum

Answer 1

Answer:

a. diminishing marginal utility.

Explanation:

According to the law of Diminishing Marginal Utility, with the increase in the unit of consumption, the marginal utility attained from it starts to decrease. Marginal utility is the utility attained from the increase in each unit which is consumed. Utility represents satisfaction and attainment of happiness from any source.