The table below shows the total utility associated with various units of goods X and Y.Table 7.5

-The demand curve for a product slopes downward and to the right because:
A)total utility decreases as more of the product is consumed.
B)total utility derived from both, the product and its substitutes is the same.
C)marginal utility of the product diminishes as more of the product is consumed.
D)there are no substitutes for the product.
E)when the price falls, the income effect causes consumers to buy less of the product.

Question

The table below shows the total utility associated with various units of goods X and Y.Table 7.5
 
-The demand curve for a product slopes downward and to the right because:
A)total utility decreases as more of the product is consumed. 
B)total utility derived from both, the product and its substitutes is the same. 
C)marginal utility of the product diminishes as more of the product is consumed. 
D)there are no substitutes for the product. 
E)when the price falls, the income effect causes consumers to buy less of the product.

Quizplus · Accepted Answer

The demand curve for a product slopes downward and to the right because of the law of diminishing marginal utility, which states that as more of a good is consumed, the additional satisfaction gained from each additional unit consumed decreases. Therefore, consumers are willing to pay less for each additional unit consumed, resulting in a downward-sloping demand curve.

The Table Below Shows the Total Utility Associated with Various