A consumer will go on buying cigarettes as long as his satisfaction continues and they render utility. If he continues to pay the current price, his satisfaction is greater than his financial sacrifice. With each purchase, however, his satisfaction decreases, although the prices remain the same. If a consumer’s supply of money is limited, a point will come when the financial sacrifice is greater than the satisfaction of smoking cigarettes. He will stop buying the commodity. The cigarettes are the same, but their utility has changed.We can see that the nature of a commodity remains the same, but its utility changes.
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