The Law of Diminishing Marginal Utility Explains Why

question 113

Multiple Choice

The law of diminishing marginal utility explains why

• A)most individual demand curves are straight lines.
• B)the consumer's optimal purchase is at the tangency of an indifference curve and the budget line.
• C)most individual demand curves slope downward.
• D)marginal utility falls when total utility falls.

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Definitions:

Associative

Related to or involving the combination or co-occurrence of elements or items within a group or category.

Judgmental

Relating to or involving the use of personal judgment or opinion to make decisions or form conclusions.

Technological Forecasts

Long-term forecasts concerned with the rates of technological progress.

Business Cycle

The natural rise and fall of economic growth that occurs over time, including periods of prosperity, recession, depression, and recovery.