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A

Anonymous

Nov 16, 2024

A consumer’s demand curve for a product is downsloping because:.a. total utility falls below marginal utility as more of a product

A consumer's demand curve for a product is downsloping for several reasons:

a. Total utility falls below marginal utility as more of the product is consumed.

b. The perceived value of time decreases as consumption of the product increases.

c. Marginal utility diminishes with each additional unit of the product consumed.

d. The income and substitution effects precisely offset one another.

3 Answers

A
Anonymous

Jan 03, 2025

c. marginal utility diminishes as more of a product is consumed. Explanation:The law of diminishing marginal utility states that when a person consumes more and more units, the marginal utility of extra units diminishes as additional units are obtained from the marginal utility.  Moreover, the graph of this diminished marginal utility that results in the consumer demand curve for a product goes downward sloping.

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