Need explaination for (law of diminishing utility)?

Question

Is money an exception to the (law of diminishing utility) logically as people get more money, each each additional dollar does not lose it`s utility;in fact, the consumer satisfaction increases for each additional dollar..However, is this law of diminishing utility only pertaining tp products or can it be more? Explain in detail and provide real world scennario.? I need 5 to 6 pages explaining if can not just give me good explaination ,thanks

Answer 1

convex preferences, in-between choices r preferred to extremes, if this i we get dimminishing marginal utility w.r.t. money(moneys m.u. is taken fixed) now even money is not an exeption m.u. dimminishing is seen, but -ve is rare, because practising there wouldn't satisfy w.a.r.p.(weak axiom of revealed preference),such cases will not be taken into account for an utility maximising consumer. in analysing backward sloping labor curve it's true what u r reffering is probably to earning power increasing, ya exess consumerism, consumption-rest patterns w.r.t. max endowments  is sometimes spotted to extremes that it is harmful for consumer or reverse the analysis individual as producer. such individuals suffer physically and mentally, usually, not only ,miss hilton. the real difficlty lies that utility is percieved, and perception varies at levels in individual themselves, so as long as utility is percieved it's true even if trends r reserved over time hence such trends r difficult to prove not impossible, we show that individuals r not strictly better off in second stage at least worse off .............

but it is still true that non satiation holds and individuals maximise utility subject to monotonic preferences ever increasing demand tho' marginal utility dimminishes, keeps on dimminishing,

m.u. can also increase say u r new to some trend, more info about the product may suddenly increase your m.u. eg. finding right person, car, etc..........