Lebanon Map Tourist Attractions on These observations led Jevons to articulate the idea that later became known as the principle of diminishing marginal utility: We may state as a general law, that the degree of utility varies with the quantity of commodity, and ultimately decreases as that quantity increases. Jevons realized that value depended not on total utility, but on the final degree of utility of a particular good. This insight allowed Jevons to develop his wellknown principle of exchange, which holds that the ratio of exchange of any two commodities will be the reciprocal of the ratio of the final degrees of utility of the quantities of commodity available for consumption after the exchange is completed. For example, consider a consumer whose marginal utility of oranges is 2 units and whose marginal utility of apples is 4 units. If she gives up 1 apple, she loses 4 units of utility and would require 2 oranges to offset the loss. Thus, the ratio of exchange, 2 oranges for 1 apple, equals the reciprocal of the ratio of the marginal utility of oranges to apples. In addition to developing marginal analysis, Jevons was also instrumental in introducing mathematics into the field of economics. Lebanon Map Tourist Attractions 2016.
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