GENERAL KNOWLEDGE

Detailed explanation-1: -The law of diminishing marginal utility directly relates to the concept of diminishing prices. As the utility of a product decreases as its consumption increases, consumers are willing to pay smaller dollar amounts for more of the product.

Detailed explanation-2: -The law of diminishing marginal utility applies to business in that it is closely connected to the law of demand. That law states that as price decreases, consumption increases and that as price increases, consumption decreases.

Detailed explanation-3: -The law of demand is a fundamental principle of economics that states that at a higher price, consumers will demand a lower quantity of a good. Demand is derived from the law of diminishing marginal utility, the fact that consumers use economic goods to satisfy their most urgent needs first.

Detailed explanation-4: -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-5: -The correct answer is H. H. Gossen. HH Gossen formulated the Law of Diminishing Marginal Utility (DMU). He formulated this law in 1854.