The law of diminishing marginal utility implies that in order to induce a buyer to buy more of a product, the seller must lower its price.

The law of diminishing marginal utility states that as a person consumes more units of a good, the satisfaction (utility) gained from consuming each additional unit decreases. Therefore, to encourage a buyer to purchase more of a product, the seller often needs to lower the price to make the additional units more appealing, compensating for the reduced utility of subsequent units.