An individual's demand curve slopes downward because
A) the value of the marginal utility falls as the price decreases.
B) of the law of diminishing marginal utility.
C) the marginal utility of the last unit always equals the price.
D) marginal utility falls as price decreases.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility explains why an individual's demand curve slopes downward; as more units of a good are consumed, the additional satisfaction (marginal utility) gained from consuming each additional unit decreases, leading consumers to only purchase more at lower prices.

An Individual's Demand Curve Slopes Downward Because