The law of diminishing marginal utility guarantees that demand curves will have positive slopes.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility suggests that as a person consumes more of a good, the additional satisfaction (marginal utility) they get from each additional unit decreases, which actually supports the idea that demand curves have negative slopes, meaning that as the price decreases, the quantity demanded increases.

The Law of Diminishing Marginal Utility Guarantees That Demand Curves