Question
Which of the following scenarios best demonstrates diminishing marginal utility in economic terms?
Jimmy's bicycle is old and the parts are worn, so he has to peddle harder to get the same result.
Sandy's old car breaks down frequently.
Julie already had 4 pairs of athletic shoes, but she bought a 5th pair on sale in a different style
The coin collector acquired a rare coin today.
Answer
Julie already had 4 pairs of athletic shoes, but she bought a 5th pair on sale in a different style.