Marginal Revolution

The Margin revolution made a simple but a crucial point. We cannot assume that all things have inherent value, things have value only insofar as people want them.Let`s take a diamond for instance. Normaly Its worth much more than a glass of water, but for a man on the desert who has endured days of thirst. He would probably pay any amount of cash to drink.The amount of satiscaction one takes from every glass is called MARGINAL UTILITY.in this case Diminishing Utility.
The Idea of Marginal utility blossomed under economist, Alfred Marschall who propounded the idea that consumers make decisions based on marginal consideration. Previously attention had focused more on supply and demand, he emphasized that consumers`s desires should also be considered.