As consumers consume more units of an item, the marginal benefit of each additional unit decreases at an increasing rate. This can be seen through:
A)demand curves that are flatter at lower quantities and steeper at higher quantities.
B)demand curves that are vertical.
C)demand curves that are steeper at lower quantities and flatter at higher quantities.
D)demand curves that are positively sloped.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as consumers consume more units of an item, the marginal benefit of each additional unit decreases at an increasing rate. This means that the demand curve will become steeper at lower quantities (as consumers are willing to pay more for the first few units) and flatter at higher quantities (as the marginal benefit decreases). Therefore, choice C is the best answer as it reflects this pattern in the demand curve.

As Consumers Consume More Units of an Item, the Marginal