Question

Demand curve can be derived from law of diminishing marginal utility by which assumption

Answer 1

Answer:

Law of DMU states that as we consume more and more units of the commodity the utility derives from each successive unit goes on decreasing. So, demand for a commodity depends on its utility. If the consumer gets more satisfaction he will pay more.As a result consumer will not be prepared to pay the same price for additional units of the commodity. The consumer willbuy more units of the commodity only when price falls