Along a downward-sloping linear demand curve
A)the marginal utility from the consumption of each unit of the good and the total utility from consuming larger quantities increase.
B)the marginal utility from the consumption of each unit of the good and the total utility from consuming larger quantities remain constant.
C)the marginal utility from the consumption of each unit of the good falls and the total utility from consuming larger quantities increases.
D)the marginal utility from the consumption of each unit of the good rises and the total utility from consuming larger quantities remain constant.

Question

Quizplus · Accepted Answer

Along a downward-sloping linear demand curve, the marginal utility from the consumption of each unit of the good falls and the total utility from consuming larger quantities increases. This is because as more units of the good are consumed, the marginal utility of each additional unit decreases, but the overall total utility still increases as more units are consumed.

Along a Downward-Sloping Linear Demand Curve