-Moving downward along a demand curve, so that the price falls and the quantity demanded increases, the marginal utility of each additional unit of the good consumed
A) always decreases.
B) stays the same.
C) always increases.
D) at first increases and then decreases.
E) could increase, decrease or stay the same.

Question

-Moving downward along a demand curve, so that the price falls and the quantity demanded increases, the marginal utility of each additional unit of the good consumed
A) always decreases. 
B) stays the same. 
C) always increases. 
D) at first increases and then decreases. 
E) could increase, decrease or stay the same.

Quizplus · Accepted Answer

The marginal utility of each additional unit of a good consumed decreases as more of that good is consumed, according to the law of diminishing marginal utility.

-Moving Downward Along a Demand Curve, So That the Price