The law of diminishing marginal utility is consistent with the consumer behavior that produces a negatively sloped demand curve.

Question

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The law of diminishing marginal utility states that as a consumer consumes more and more units of a good, the additional satisfaction or utility that they obtain from each additional unit decreases. This means that as the quantity consumed increases, the marginal utility of each additional unit decreases. This is consistent with a negatively sloped demand curve, as consumers will be willing to pay less for each additional unit consumed due to the decreasing marginal utility. Therefore, the law of diminishing marginal utility supports the general pattern of consumer behavior that leads to a negatively sloped demand curve.

The Law of Diminishing Marginal Utility Is Consistent with the Consumer