Which of the following is FALSE?
A) A consumer is maximizing total utility when he or she gets the same amount of marginal utility from the last dollar spent on each good purchased.
B) As additional units of a good or service are consumed, marginal utility diminishes.
C) Utility is want-satisfying power.
D) Assuming that the law of diminishing marginal utility holds, the demand curve must be upward sloping.

Question

Quizplus · Accepted Answer

Assuming the law of diminishing marginal utility holds, it is possible for the demand curve to be downward sloping if the initial marginal utility per unit is high enough to compensate for diminishing marginal utility as quantity consumed increases. Therefore, D is false.

Which of the Following Is FALSE