The law of demand and the law of diminishing marginal utility are related since both:

Question

Quizplus · Accepted Answer

The law of demand states that as the price of a good or service increases, the quantity demanded decreases, assuming all else remains constant. The law of diminishing marginal utility states that as consumption of a good or service increases, the marginal utility derived from each additional unit decreases, assuming other goods remain constant. This means that consumers will value the first unit of a good or service more highly than subsequent units, and eventually reach a point where they are no longer willing to pay for additional units at the current price. Both laws address consumer behavior in relation to the consumption of goods or services.

The Law of Demand and the Law of Diminishing Marginal