Which of the following is true 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 remains constant.

Question

Quizplus · Accepted Answer

Along a downward-sloping linear demand curve, as the quantity consumed increases, the marginal utility from the consumption of each additional unit falls. However, because the consumer is consuming more units, the total utility from consuming larger quantities increases. This is in line with the law of diminishing marginal utility.

Which of the Following Is True Along a Downward-Sloping Linear