Importance of the Law:
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1. The Law of Diminishing Marginal Utility is the foundation for various other economic laws.

2. The Law of DMU operates in the case of money also. A rich man already possesses a lot of money. If more and more money is newly added to his income, marginal utility of money begins to fall.

3. This law is a handy tool for the Finance Minister for increasing tax rate on the rich. Thus, it is useful in the field of fiscal policy.

4. Producers are guided by this law consciously or unconsciously. They constantly change the design, the package of their goods so that the goods become more attractive to the consumers and they appear as `new goods`.