Question

Do you agree with Henry David Thoreau’s quote, “Happiness is like a butterfly; the more you chase it, the more it will elude you, but if you turn your attention to other things, it will come and sit softly on your shoulder”?

Can this relate to how much money you make? If you make more than $75,000 per year, will you be happier?

https://www.cnbc.com/2017/11/20/how-much-money-you-need-to-be-happy-according-to-wealth-experts.html (Links to an external site.)

Explain your answer using diminishing marginal utility.

Answer 1

The Law Of Diminishing Marginal Utility  states that all things and conditions being equal and normal as the rate of consumption increases the marginal utility derived from each additional unit consumed declines or goes on decreasing for example eating the first piece of cake gives the maximum satisfaction and as we go on eating cakes we not more wish to eat additional amount. the marginal utility is derived as the change in utility or the unit of satisfaction derived from a product after consumption as an additional unit is consumed . Utility is an economic term used to represent satisfaction or happiness. No making more money cannot make one happy as the surplus amount of money will loose its utility.