ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
True
|
|
|
False
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -The law of diminishing marginal utility is a law of economics that states that as your consumption increases, the satisfaction you derive from each individual unit decreases.
Detailed explanation-2: -Diminishing marginal utility and the law of demand The law of diminishing marginal utility helps us understand the law of demand. Because consumers will derive less happiness or benefit from additional units of a good, they will only be willing to buy a larger quantity if the price decreases.
Detailed explanation-3: -The law of diminishing marginal utility holds that as we consume more of an item, the amount of satisfaction produced by each additional unit of that good declines. The change in utility gained from utilizing an additional unit of a product is known as marginal utility.
Detailed explanation-4: -The law of diminishing marginal utility means that as you use or consume more of something, you will get less satisfaction from each additional unit of that thing.