Question
The Marginal Utility Curve slopes downward from left to right indicating
Answer: Option A
Answer: (a)
The Marginal Utility Curve is a curve illustrating the relation between the marginal utility obtained from consuming an additional unit of a good and the quantity of the good consumed. The negative slope of the marginal utility curve reflects the law of diminishing marginal utility.
The marginal utility curve also can be used to derive the demand curve. Marginal Utility is the utility derived from the last unit of a commodity purchased. One of the earliest explanations of the inverse relationship between price and quantity demanded is the law of diminishing marginal utility.
This law suggests that as more of a product is consumed the marginal (additional) benefit to the consumer falls; hence consumers are prepared to pay less.
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Answer: (a)
The Marginal Utility Curve is a curve illustrating the relation between the marginal utility obtained from consuming an additional unit of a good and the quantity of the good consumed. The negative slope of the marginal utility curve reflects the law of diminishing marginal utility.
The marginal utility curve also can be used to derive the demand curve. Marginal Utility is the utility derived from the last unit of a commodity purchased. One of the earliest explanations of the inverse relationship between price and quantity demanded is the law of diminishing marginal utility.
This law suggests that as more of a product is consumed the marginal (additional) benefit to the consumer falls; hence consumers are prepared to pay less.
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