Question : What is the name of the law that causes the demand curve to slope downward?
Option 1: Consumer equilibrium
Option 2: Utility minimization
Option 3: Utility maximization
Option 4: Diminishing marginal utility
Answer (1)
25th Jan, 2024
Correct Answer: Diminishing marginal utility
Solution :
Law of diminishing marginal utility:-
The marginal utility of a commodity decreases as the quantity of goods increases, according to this principle. As a result, as the quantity increases, prices fall while demand rises. As a result, when prices are lower, consumers will demand more goods. As a result, the demand curve slopes downward.
Hence d is correct answer.
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