How does the law of decreasing marginal utilityin addition how does it Wesley against the wealth effect?

The law of decreasing marginal utility states that as a consumer consumes more of a good, the additional satisfaction (utility) gained from each subsequent unit decreases. This concept can counteract the wealth effect, which suggests that as individuals feel wealthier, they tend to spend more. When marginal utility declines, even if wealth increases, consumers may not proportionately increase their spending because the additional satisfaction derived from consuming more diminishes. This interplay can lead to more cautious spending behaviors despite rising wealth.