Diminishing marginal utility leads to the demand curve generally being:
A) Vertical
B) Upward sloping
C) Horizontal
D) Downward sloping

Question

Quizplus · Accepted Answer

Diminishing marginal utility means that as a consumer consumes more of a good, the additional satisfaction (utility) gained from consuming an additional unit of that good decreases. This principle is a key reason why demand curves are generally downward sloping: as the price of a good decreases, consumers are willing to buy more of it because the cost of obtaining the additional utility (satisfaction) from each extra unit consumed is lower.

Diminishing Marginal Utility Leads to the Demand Curve Generally Being