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Commerce · Q188

Economics

Graduate and Post Graduate · Commerce · question 188

Q188

Demand curve slopes downward because of the law of

A.
Consumer equilibrium
B.
Utility maximization
C.
Utility minimization
D.
Diminishing marginal utility
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Demand curve slopes downward because of the law of Diminishing marginal utility. The law of diminishing marginal utility states that with each increasing quantity of the commodity, its marginal utility declines.