Point of Satiety is defined as '' the point where marginal utility of any commodity is zero''. Thus it is a point where satisfaction of any commodity is zero.

Point of satiety refers to that level where the consumer will obtain the highest level of satisfaction from consuming additional quantities of goods or services. So,point of satiety is where the MU becomes zero.

Point of Satiety:

The point of satiety refers to the point at which an individual's marginal utility from consuming a good or service becomes zero. In other words, it is the point at which the individual no longer derives any additional satisfaction or benefit from consuming more of the good or service.

Explanation:

1. Marginal Utility:

Marginal utility is the additional satisfaction or benefit that an individual derives from consuming an additional unit of a good or service. It is the change in total utility resulting from a one-unit change in the consumption of a good or service.

2. Diminishing Marginal Utility:

The law of diminishing marginal utility states that as an individual consumes more and more units of a good or service, the marginal utility derived from each additional unit will decline. This means that the individual will experience less satisfaction or benefit from consuming each additional unit.

3. Marginal Utility and Total Utility:

Total utility is the overall satisfaction or benefit that an individual derives from consuming a certain quantity of a good or service. It is the sum of the marginal utilities of each unit consumed.

4. Point of Satiety:

At the point of satiety, the individual has consumed enough of the good or service that the marginal utility derived from consuming an additional unit becomes zero. This means that the individual no longer gains any additional satisfaction or benefit from consuming more of the good or service.

5. Example:

For example, let's consider a person eating a pizza. Initially, the person may experience high levels of satisfaction and enjoyment from consuming the first few slices of pizza. However, as they continue to eat more slices, the marginal utility they derive from each additional slice will start to decline. Eventually, they will reach a point where the marginal utility becomes zero, and they no longer derive any additional satisfaction from consuming more slices of pizza. This is the point of satiety.

Conclusion:

The point of satiety is the point at which an individual's marginal utility from consuming a good or service becomes zero. It signifies the point at which the individual no longer derives any additional satisfaction or benefit from consuming more of the good or service. This concept is based on the law of diminishing marginal utility, which states that as an individual consumes more units of a good or service, the marginal utility derived from each additional unit will decline.