The law of diminishing marginal utility explains why
...The law of diminishing marginal utility explains why
The slope of a normal demand curve is negative
An abnormal demand curve slopes upwards
The slope of a normal demand curve is positive
The consumption of inferior goods increases with income
Correct answer is A
In economics, the law of diminishing marginal utility states that the marginal utility of a good or service declines as its supply increases.
The law of diminishing marginal utility helps to explain the negative slope of the demand curve and the law of demand. If the satisfaction obtained from a good declines, then buyers are willing to pay a lower price, hence demand price is inversely related to quantity demanded, which is the law of demand.
Which of the following is not correct? ...
Which of the following is an item of government recurrent expenditure? ...
Subsistence agriculture means ...
Production in Economics occurs when ...
Marginal cost curve intersects average cost curve ...
The distribution of goods by the price system is distorted when ...