According to the utility model of consumer demand, the law of diminishing marginal utility indicates that the demand curve is:
A) flat.
B) downward sloping.
C) U-shaped.
D) upward sloping.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as a consumer consumes more units of a good, the additional utility gained from each additional unit diminishes. This means that consumers are willing to pay less for each additional unit, resulting in a downward-sloping demand curve.

According to the Utility Model of Consumer Demand, the Law