The predictions of marginal utility theory
A) contradict the idea that the demand curve slopes downward.
B) support the idea that the demand curve slopes downward.
C) support the idea that the supply curve slopes upward.
D) contradict the idea that the supply curve slopes upward.

Question

Quizplus · Accepted Answer

Marginal utility theory suggests that as a person consumes more of a good, the additional satisfaction (marginal utility) from each additional unit decreases, leading to a willingness to pay less for additional units, which supports the downward-sloping demand curve.

The Predictions of Marginal Utility Theory