Question on: JAMB Economics - 2023
Which of the following shows why individual demand curve for a good usually slopes downward from left to right?
More of commodities are offered for sale at a lower than higher prices
Marginal utility falls as consumption increases
The higher the price, the higher the quantity offered for sale
Prices are usually falling when demand is low
"Marginal utility falls as consumption increases." The law of diminishing marginal utility explains that as a consumer consumes more units of a good, the additional satisfaction or marginal utility derived from each additional unit tends to decrease. This diminishing marginal utility leads to a lower willingness to pay for each additional unit, resulting in a downward-sloping demand curve.
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