Because successive units of a good produce less and less additional satisfaction, the price must fall to encourage a buyer to purchase more units of the good. This statement is most consistent with which explanation for the law of demand?

Question

Quizplus · Accepted Answer

The statement refers to diminishing marginal utility, which is the concept that as a consumer consumes more and more units of a good, the additional satisfaction or utility from each additional unit decreases. This leads to a decrease in willingness to pay for the good, resulting in a downward slope of the demand curve.

Because Successive Units of a Good Produce Less and Less