According to the utility model of consumer demand, the demand curve is downward sloping because of the law of:
A) diminishing marginal utility.
B) increasing cost.
C) utility minimization.
D) diminishing consumer surplus.

Question

Quizplus · Accepted Answer

The law of diminishing marginal utility states that as a consumer consumes more units of a good or service, the additional satisfaction or utility from each additional unit will eventually start to decrease, leading to a downward-sloping demand curve.

According to the Utility Model of Consumer Demand, the Demand