The figures below show Chris's consumption of specialty coffee per week.
FIGURE 6- 10
-Marginal utility analysis predicts a downward- sloping demand curve for good X because
A)as PX rises,the consumer increases purchases of X such that MUX/PX is equal to MU/P for all other products.
B)all demand curves are downward sloping,regardless of the behaviour of consumers.
C)utility- maximizing consumers equate marginal utility received for each product consumed.
D)as PX falls,the consumer increases purchases of X until MUX/PX is equal to MU/P for all other products.
E)as PX falls,the ratio MUX/PX becomes smaller,causing the consumer to purchase more of good X.

Question

The figures below show Chris's consumption of specialty coffee per week.
  FIGURE 6- 10
-Marginal utility analysis predicts a downward- sloping demand curve for good X because
A)as PX rises,the consumer increases purchases of X such that MUX/PX is equal to MU/P for all other products. 
B)all demand curves are downward sloping,regardless of the behaviour of consumers. 
C)utility- maximizing consumers equate marginal utility received for each product consumed. 
D)as PX falls,the consumer increases purchases of X until MUX/PX is equal to MU/P for all other products. 
E)as PX falls,the ratio MUX/PX becomes smaller,causing the consumer to purchase more of good X.

Quizplus · Accepted Answer

Marginal utility analysis predicts a downward- sloping demand curve for good X because as PX falls, the consumer increases purchases of X until MUX/PX is equal to MU/P for all other products. This is because the marginal utility of consuming each additional unit of a good decreases as consumption increases, leading consumers to purchase less of the good as its price increases.

The Figures Below Show Chris's Consumption of Specialty Coffee Per