The downward slope of the demand curve is related to the:
A) Law of diminishing total returns.
B) Law of diminishing marginal utility.
C) Upward sloping supply curve.
D) Opportunity cost of producing the gooD.

Question

Quizplus · Accepted Answer

The downward slope of the demand curve is related to the law of diminishing marginal utility. This means that as the quantity consumed of a good increases, the additional satisfaction or utility from consuming each additional unit decreases. Therefore, consumers will only be willing to pay a higher price for additional units if the price decreases. This results in a downward sloping demand curve. The other choices are not directly related to the shape of the demand curve.

The Downward Slope of the Demand Curve Is Related to The