Along a downward-sloping linear demand curve
A) the marginal utility from the consumption of each unit of the good and the total utility from consuming larger quantities increase.
B) the marginal utility from the consumption of each unit of the good and the total utility from consuming larger quantities remain constant.
C) the marginal utility from the consumption of each unit of the good falls and the total utility from consuming larger quantities increases.
D) the marginal utility from the consumption of each unit of the good rises and the total utility from consuming larger quantities remains constant.

Question

Quizplus · Accepted Answer

Along a downward-sloping linear demand curve, as more of a good is consumed, the marginal utility from consuming each additional unit of the good falls. However, the total utility from consuming larger quantities still increases because the consumer is obtaining more units of the good, even if the additional satisfaction from each unit is less.

Along a Downward-Sloping Linear Demand Curve