Which of the following shows why individual dem... - JAMB Economics 2023 Question
Which of the following shows why individual demand curve for a good usually slopes downward from left to right?
A
More of commodities are offered for sale at a lower than higher prices
B
Marginal utility falls as consumption increases
C
The higher the price, the higher the quantity offered for sale
D
Prices are usually falling when demand is low
correct option: b
"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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