Which of the following shows why individual demand curve for…

JAMB Economics 2023 298 views
Source: JAMB · 2023

Which of the following shows why individual demand curve for a good usually slopes downward from left to right?

  1. More of commodities are offered for sale at a lower than higher prices
  2. Prices are usually falling when demand is low
  3. Marginal utility falls as consumption increases ✓
  4. The higher the price, the higher the quantity offered for sale
Explanation

The demand curve slopes downward because marginal utility falls as consumption increases. Each extra unit gives less satisfaction, so a buyer will pay less for it.

The other options describe supply, not demand.

Was this explanation helpful?

Something wrong or missing? Tell us — we read every report and fix issues fast.

pastQuestions.ng pastquestions.ng