According to the law of diminishing marginal utility, what happens as extra units of a good are consumed?

The law of diminishing marginal utility states that as a person consumes additional units of a good, the additional satisfaction (or utility) gained from each successive unit tends to decrease. When an individual consumes one unit of a good, they derive a certain level of satisfaction from it. However, as they consume more units, each additional unit contributes a smaller increment to their overall satisfaction. This decrease in satisfaction with each added unit reflects the idea that resources are limited and preferences are subject to saturation; as needs or desires are met, the additional gain from consuming more becomes less significant.

For example, if you start eating slices of pizza, the first slice is typically very satisfying. However, by the time you reach the fourth or fifth slice, you may find that each additional slice offers less satisfaction than the first. This illustrates the principle behind diminishing marginal utility, where the value or utility of consuming additional units diminishes as consumption increases. Understanding this principle is essential in microeconomics as it influences consumer choices, pricing, and demand for goods.