The law of diminishing marginal utility gives us insight into the downward-sloping demand curve because consumers are willing to pay a higher price for goods with high marginal utility.

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The law of diminishing marginal utility states that as a person consumes more units of a good, the utility or satisfaction derived from each additional unit decreases. This means that consumers are willing to pay less for each additional unit consumed, leading to a downward-sloping demand curve. Therefore, consumers are willing to pay a higher price for goods with high marginal utility, which is reflected in the higher quantity demanded at a lower price point.

The Law of Diminishing Marginal Utility Gives Us Insight into the Downward-Sloping