How does the theory of marginal utility help to explain why a demand curve slopes downward to the right? Because the mar

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answerhappygod
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How does the theory of marginal utility help to explain why a demand curve slopes downward to the right? Because the mar

Post by answerhappygod »

How does the theory of marginal utility help to explain why a
demand curve slopes downward to the right?
Because the marginal utility of a good declines as more of it is
consumed, price must fall to persuade people to buy additional
units of it.
The utility of a good increases as more of it is consumed; thus,
price increases because people are gaining more satisfaction from
the good.
As price rises and quantity demanded falls, marginal utility
falls.
As price falls and quantity demanded increases, marginal utility
is increased.
As you consume more of a product your marginal utility
increases.
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