Economic and me

“DEFINITION of 'Law Of Diminishing Marginal Utility' A law of economics stating that as a person increases consumption of a product - while keeping consumption of other products constant - there is a decline in the marginal utility that person derives from consuming each additional unit of that product.”(As per many textbooks and google.com)…huh?? What is It.? Well I am with you guys. I am amongst those non-economics students for whom this topic is like an alien to earth. After reading it for the first time my head started to spin. It always does after reading any damn new topics of economics. I am a science lover and an Engineer. Stuff like this suddenly makes me sleepy.

Well it’s not a rocket science in the end. It’s quite simple. It goes as, utility is satisfaction after consuming anything, and be it a food item or any product. Imagine, if you are a spicy pani-puri lover and you are shifted out of country by your company. Where there is no item as such pani-puri. Remember your desire to consume it. The moment you are back to India, the very first thing one would like to do is to go to a local street stall and have pani-pure. The first spicy puri filled with its spicy water and boiled potato. What kind of pleasure it may give you at that time. That satisfaction is no bound. Now that’s utility.

After consuming one full plate of pani puri you may want to have one more plate of the same to compensate loss made during your stay in other country. That’s second pani-puri plate. Later on your friend might insist you to have one more plate. That will be third one. Then again fourth plate was insisted by someone. Now you are totally done with your quota for pani puri and if still you are forced to have one more plate you won’t enjoy it, that’s disutility.

If we see, second plate may not be that much interesting as first one. Third may not be as interesting as second one. And so on… now that’s ‘Law of Diminishing Marginal Utility' in rough. I don’t want to go in many details, as I am not an expert to comment on this. I am just a management student.

Reading this topic has opened my eyes. How simple economics topic can be actually related to life. After all, economic is not a science of aliens. There were many questions in my mind for which ‘Law of Diminishing Marginal Utility' has given me answers. For example, why is it that the first date of a person whom you love most will always remain in your heart (Mine was at ‘Paratha house’ in Nagpur followed by Mr. Beans Café with my boy friend, who is my husband now.). Why is it that first rain after heated summer is very mesmerizing? Every drop, every breeze and seven colored rainbow of that rain is special.  After five days of working hard, our weekend is the only time where we really enjoy. Out of day Saturday is more interesting than Sunday. If you are married then you will understand this. All the festivals after marriage are supposed to be celebrated will full zeal and enthusiasm. Rituals, family, gifts, love all make those all first festival post marriage very unique.  My first pay check. Oh god, I was feeling as if I am on cloud nine. Whatever may be the amount but that feeling of achieving something. Feeling of being on our own. First child of your life, gives immense pleasure to explain which I have no words. Its beyond explanation. Later on first promotion, first house,. These all ‘first’s’ of our life always remains special. Very special. Seconds, thirds are important and special. But the utility for the first always remains maximum. And the reason for this is Law Of Diminishing Marginal Utility'. Keep relating economics to day to day life things and soon economics will be fun.

In the end, stay hungry, stay foolish.