Negatively sloped demand curves can be explained by the law of diminishing marginal utility.

Question

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The law of diminishing marginal utility posits that as a consumer consumes more and more units of a particular good or service, the utility or satisfaction derived from each additional unit decreases. This means that a consumer is willing to pay a higher price for the first unit of a good, but as they continue to consume more and derive less satisfaction from each additional unit, their willingness to pay decreases. This results in a negatively sloped demand curve where consumers are willing to pay a higher price for fewer units of a good, but as the quantity consumed increases, their willingness to pay decreases.

Negatively Sloped Demand Curves Can Be Explained by the Law