The Law of Diminishing Marginal Utility Gives Us a Deeper

question 91

Multiple Choice

The law of diminishing marginal utility gives us a deeper understanding of the downward-sloping demand curve because

• A)Consumers are willing to pay a higher price for a greater quantity.
• B)Consumer tastes change due to advertising.
• C)When marginal utility is high,we are willing to pay a higher price.

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Definitions:

Good Faith

An honest intention to act without taking an unfair advantage over another person.

Wrongful Rejection

The unjustified refusal of a buyer to accept goods or services as stipulated in a contract.

Good Faith

The genuine intention to act without taking an unfair advantage over another party in a transaction.

Honest In Fact

A standard requiring parties in certain transactions to act with genuine intent without deceit or fraud.