A consumer's demand curve for a product is downsloping because
A)total utility falls below marginal utility as more of a product is consumed.
B)marginal utility diminishes as more of a product is consumed.
C)time becomes less valuable as more of a product is consumed.
D)the income and substitution effects precisely offset each other.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility explains why the demand curve is downsloping; as more of a product is consumed, the additional satisfaction (marginal utility) gained from consuming one more unit decreases.

A Consumer's Demand Curve for a Product Is Downsloping Because