-Which of the following most clearly illustrates the law of diminishing marginal utility?
A)The total satisfaction from consuming a good falls as more of the good is consumed.
B)Marginal utility falls as total utility falls.
C)The quantity of a good demanded falls as its price rises.
D)The additional satisfaction from consuming a good falls as more of the good is consumed.
E)There is a direct relationship between the price of a good and its total utility.

Question

-Which of the following most clearly illustrates the law of diminishing marginal utility?
A)The total satisfaction from consuming a good falls as more of the good is consumed. 
B)Marginal utility falls as total utility falls. 
C)The quantity of a good demanded falls as its price rises. 
D)The additional satisfaction from consuming a good falls as more of the good is consumed. 
E)There is a direct relationship between the price of a good and its total utility.

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as a person consumes more units of a good, the additional satisfaction (marginal utility) gained from consuming each additional unit decreases.

-Which of the Following Most Clearly Illustrates the Law of Diminishing