The law of diminishing marginal utility helps explain why the demand curve slopes downward because: a. Consumers get more satisfaction as they buy more of a good, so the price they are willing to pay increases. b. The additional satisfaction from consuming more units of a good decreases, so consumers are willing to pay less for additional units. c. Consumers face higher utility when they consume fewer goods. d. Consumers' preferences for the good increase as its price increases.
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This principle states that as a consumer consumes more units of a good, the additional satisfaction (or utility) gained from each additional unit decreases. Show more…
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