One reason that helps to explain the law of demand is the law of
A) diminishing marginal utility.
B) diminishing marginal returns.
C) increasing opportunity costs.
D) supply.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as a consumer consumes more of a good or service, the additional satisfaction or benefit they receive from each additional unit of the good or service will decrease. This means that consumers are willing to pay less for additional units of the good, leading to a downward-sloping demand curve.

One Reason That Helps to Explain the Law of Demand