Question

The law of diminishing marginal utility explains why

1. supply curves slope upward.
2. demand curves slope downward.
3. addicts can never get enough.
4. people will only consume their favorite goods and not try new things.

Answer 1

Answer:

2. Demand curves slope downward.

Explanation:

In a coordinate system, where the Y axis is the marginal utility, and the x axis is the quantity demanded, the demand curve will slope downward, because the first unit of the product demanded and consumed will produce the greatest marginal utility, and each subsequent unit demanded and consumed will produce less and less marginal utility.

In other words, the quantity demanded and consumed, and the marginal utility are inversely related, if one variable goes up, the other goes down, and viceversa.