36. Marginal utility analysis tells us that a rise in the price of a good, ceteris paribus, leads each consumer to reduce the _______________ of the good. This, in turn, predicts a _______________ demand curve.
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The price a consumer is willing to pay for a good depends on his marginal utility, which declines with each additional unit of consumption, according to the law of diminishing marginal utility. Therefore, the price decreases for a normal good when consumption increases.
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