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Reasons for Downward Sloping Demand Curve

Marginal util...

Question

Marginal utility is a function of ________.

A

Demand

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B

Supply

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C

Cost

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D

Consumption

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Solution

The correct option is B Demand
Marginal utility is a function of demand. It explains why the demand curve of a commodity is downward sloping. As the marginal utility derived from the commodities goes on decreasing, the demand curve takes a downward slope.

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Reasons for Downward Sloping Demand Curve

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