Question : Which of the following is the basis of diminishing marginal utility?
Option 1: Law of supply
Option 2: Laws of return
Option 3: Law of demand
Option 4: None of the above
Correct Answer: Law of demand
Solution : The Law of Demand is based on diminishing marginal utility. When the price of a good falls, a downward-sloping marginal utility curve implies that consumers must purchase more of the good in order for its marginal utility to fall and become equal to the new price. Hence c will be the correct answer.
Question : What is the First Law of Gossen?
Question : What is the name of the law that causes the demand curve to slope downward?
Question : The law of diminishing marginal utility states that:
Question : Who has propounded the law of diminishing marginal utility?
Question : According to the law of diminishing marginal utility, as a consumer consumes more of a good:
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