The law of diminishing marginal utility is the reason for upward sloping supply curves.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility refers to the decrease in satisfaction or usefulness as additional units of a good or service are consumed. It does not have a direct relationship with supply curves, which depict the relationship between the price of a product and the quantity that producers are willing and able to supply. In general, supply curves tend to slope upward because as the price of a good increases, producers can earn higher profits and are motivated to produce more, while at the same time consumers may be incentivized to buy less due to the higher price.

The Law of Diminishing Marginal Utility Is the Reason for Upward