The table below shows the total utility associated with various units of goods X and Y.Table 7.5

-The demand curve slopes downward because of:
A)diminishing marginal utility and consumer equilibrium.
B)the fact that consumers cannot decide how much they want to pay for goods and services.
C)the fact that suppliers cannot decide how much to charge for the goods and services they supply.
D)the fact that consumer tastes and preferences change rapidly.
E)the fact that consumers are fickle, which makes pricing a good or service very difficult.

Question

The table below shows the total utility associated with various units of goods X and Y.Table 7.5
 
-The demand curve slopes downward because of:
A)diminishing marginal utility and consumer equilibrium. 
B)the fact that consumers cannot decide how much they want to pay for goods and services. 
C)the fact that suppliers cannot decide how much to charge for the goods and services they supply. 
D)the fact that consumer tastes and preferences change rapidly. 
E)the fact that consumers are fickle, which makes pricing a good or service very difficult.

Quizplus · Accepted Answer

The demand curve slopes downward due to the law of diminishing marginal utility, which states that as a consumer consumes more and more of a good, the additional satisfaction or utility that they derive from each additional unit of that good decreases. This leads to consumer equilibrium, where the consumer is willing to pay a certain price for a certain quantity of a good based on their marginal utility. As the price increases, the marginal utility decreases, leading to a decrease in the quantity demanded. Therefore, choice A is the correct answer.

The Table Below Shows the Total Utility Associated with Various