ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The principle of diminishing marginal utility states that the satisfaction we gain from buying a product lessens as we buy more of the same product. As we use more of a product, we are not willing to pay as much for it. Therefore, the demand curve is downward sloping.

Detailed explanation-2: -This is the precise relationship between demand and price. Generally, the demand curve slopes downward (i.e.its slope is negative) because the number of unit demands increases with a fall in price and vice versa. Higher price results in lower demand whereas low price results in higher demand.

Detailed explanation-3: -The law of diminishing marginal utility explains that as a person consumes more of an item or product, the satisfaction (utility) they derive from the product wanes. Demand curves are downward sloping in microeconomic models since each additional unit of a good or service is put toward a less valuable use.

Detailed explanation-4: -If there are diminishing marginal returns, then people’s willingness to pay will also decline. Hence the individual demand curve will be downward-sloping. Price and quantity demanded for most goods and services will be inversely related.