The Tendency for Marginal Utility to Decline as Consumption Increases

question 64

Multiple Choice

The tendency for marginal utility to decline as consumption increases beyond some point is called:

• A)the law of demand.
• B)the law of diminishing marginal utility.
• C)the rational spending rule.
• D)utility maximization.

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Definitions:

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a specified time period.

Supply And Demand

A fundamental economic concept that describes the relationship between the quantity of a commodity available and the quantity of that commodity people are willing to buy at certain price levels.

Marketing

The business process of identifying, anticipating, and satisfying customers' needs and wants through creating, offering, and exchanging products of value.

Operations

The day-to-day activities involved in running a business, especially those related to production and delivery of goods and services.