Question

Provide an example of the Law of Diminishing Marginal Utility

Answer 1

I think Diminishing Marginal Utility specifically refers to how it becomes less and less useful to get more and more of a product.
We can use vacuums as an example, if you like. So, say we start out having 0 vacuums. We have to clean by hand; it's hard. For the first vacuum we buy, we get a lot of utility. Suddenly, cleaning becomes a lot easier! Suppose we buy another vacuum. This second vacuum doesn't help us as much as the first one does, because we already have a vacuum at this point; maybe it's still useful to have one vacuum for downstairs and one vacuum for upstairs. Suppose we buy a third vacuum; we might never end up using this vacuum, so having yet another vacuum doesn't give us much utility at all.
You see the pattern, right? The more of an item we already have, the less utility we'll be able to gain by getting an extra of that item

Answer 2

I guess another example could be chicken sandwiches. The first one you get, if you're really hungry might be really delicious--that's a lot of utility. It might be so good that you buy another one; it still tastes good, but you're not as hungry, so it gives you less utility. From there, you can imagine what happens if you continue to buy chicken sandwiches; eventually, you get too full, and it's actually harmful to eat more. That would be an example of utility diminishing to the point that it becomes negative

Answer 3

And to tie that back to dunlapace's points, it makes sense that the less utility something gets you, the less you'd be willing to pay for it, right?
If you're really hungry, you might be willing to pay a large amount like $10 for a chicken sandwich, but you'd probably wouldn't want to pay that much after you've already eaten yourself full. You might even get to the point that someone would have to pay you to eat more (in an extreme example)