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
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.
Question : What is the First Law of Gossen?
Question : The law of diminishing marginal utility states that:
Question : Which of the following is the basis of diminishing marginal utility?
Question : The Law of Diminishing Marginal Utility will not hold good if the income of the consumer:
Question : According to the law of diminishing marginal utility, as a consumer consumes more of a good:
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile