However, the additional utility people receive from each unit of greater consumption tends to decline in a pattern of diminishing marginal utility In general, greater consumption of a good brings higher total utility.

You can add up total utility of each choice on the budget line and choose the highest total. You can select a starting point at random and compare the marginal utility gains and losses of moving to neighboring points—and thus eventually seek out the preferred choice.

diminishing marginal utility — the common pattern that each marginal unit of a good consumed provides less of an addition to utility than the previous unit. marginal utility — the additional utility provided by one additional unit of consumption. total utility — satisfaction derived from consumer choices. consumer equilibrium — point on the budget line where the consumer gets the most satisfaction; this occurs when the ratio of the prices of goods is equal to the ratio of the marginal utilities.