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The Law of Diminishing Marginal Utility Explains Why the Demand

Question 119

Multiple Choice

The law of diminishing marginal utility explains why the demand curve is downward sloping. The law states that as you consume more of a good, the


A) total satisfaction you obtain from consuming the good falls
B) added satisfaction you obtain from consuming an additional unit of the good
Increases at a diminishing rate
C) marginal product increases at a diminishing rate
D) satisfaction you obtain from each additional unit of the good you consume falls
E) total satisfaction you obtain from each additional good you consume decreases at a
Diminishing rate

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