Question

25. The law that defines the demand curve to slopes downward is known as
(a) Diminishing marginal utility (b) Utility maximization
(c) The Law of Demand (d) Consumer equilibrium

Answer 1

Answer:

c) option no c

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Answer 2

The law that defines the demand curve to slope downward is known as

Diminishing marginal utility.

Diminishing Marginal Utility

1. It states that as the consumption of a commodity increases, the marginal utility of a commodity keeps on decreasing.
2. Marginal utility is the utility derived from the consumption of one additional unit of a commodity. The marginal utility can even become zero and further decline to negative.  
3. So if the consumption increases and marginal utility decreases then the people will be willing to pay less therefore, demand curve slopes downwards.