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Economists take a glance at what buyers can afford, as displayed in a budget constraint (or budget line), and the total utility or satisfaction deduced from those decisions to comprehend how a household will make its decisions. Whereas, the extra utility offered by one additional unit of consumption is referred to as marginal utility.

The most prevalent total utility sequence is that consuming more goods contributes to higher total utility, but at a diminishing rate. As more units are consumed, marginal utility decreases, implying that every successive unit of a commodity consumed offers less additional utility. This is an instance of the law of diminishing marginal utility, which states that as more units are incorporated, the additional utility diminishes. Thus, with an additional consumption of good, the marginal utility falls.