Question

A downward sloping demand curve can be explained in terms of _______.

• A. diminishing total utility
• B. increasing total utility
• C. diminishing marginal utility
• D. increasing marginal utility

Answer 1

Answer: (C)

diminishing marginal utility

A downward sloping demand curve can be explained in terms of diminishing marginal utility. Diminishing marginal utility states tht as the consumption increases the marginal utility tends to decline.