The ________ of the demand curve corresponds to the idea that the marginal utility for the first few goods is ________.
A)top;lower
B)bottom;lower
C)top;higher
D)bottom;higher

Question

Quizplus · Accepted Answer

The top of the demand curve (or the left side) corresponds to higher prices and lower quantities demanded. This is because the marginal utility for the first few goods is higher - consumers are willing to pay more for the first few units because they provide a lot of satisfaction or utility. As they consume more of the good, the marginal utility starts to decrease, making consumers willing to pay less for each additional unit. Therefore, the demand curve is downward sloping, reflecting the inverse relationship between price and quantity demanded.

The ________ of the Demand Curve Corresponds to the Idea