answersLogoWhite

0


Best Answer

The principle of diminishing marginal utility explains the slope of the demand curve by letting us be able to see which direction the slope is in, which is always downward.

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: How does the principle of diminishing marginal utility explain the slope of the demand curve?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Explain the merits and demerits of law of diminishing marginal utility?

explain the demerits of diminishing marginal utility


What is this called when a buyer purchases a good each additional item type is less satisfying than the earlier one?

This is known as diminishing marginal utility. It is the principle that the satisfaction or utility derived from consuming each additional unit of a good decreases as more of it is consumed. This concept is a fundamental principle in economics and helps explain consumer behavior.


Criticism of law of diminishing marginal utility?

the criticisma of the law of diminishing marginal utility


What is the difference between equi-marginal utility and diminishing marginal utility?

What is the difference between equi-marginal utility and diminishing marginal utility?Read more:What_is_the_difference_between_equi-marginal_utility_and_diminishing_marginal_utility


Why does the marginal rate of substitution diminish?

As a matter of fact, law of diminishing marginal rate of substitution conforms to the law of diminishing marginal utility. According to law of diminishing marginal utility, as a consumer increases the consumption of a good, its marginal utility goes on diminishing. On the contrary, if the consumption of a good decreases, its marginal utility goes on increasing.


If marginal utility is positive but diminishing then?

Total utility increases at a diminishing rate


How does an individual or household benefit from the law of diminishing marginal utility?

what is it marginal utility


What is a sentence with marginal utility?

The expected marginal utility of the next unit of water is diminishing.


What is marginal utility. why marginal utility diminishing. give atleast 10 examples where the marginal utility have not diminising?

Life-saving procedures


Clearly differentiate between diminishing marginal utility and diminishing marginal returns?

utility: means a level of satsfection. marginal utility:an extra unit gain my consumer/consumation of addational unit. deminishing marginal utility:when a person reachs his max level of satsfection by consuming a specific product then his utility will be falling by incresing the rate of consuming goods. diminishng marginal return & Diminishing marginal utility is same.


How does diminishing marginal utility affect demand?

Well diminishing marginal utility basically states that when a person constantly consumes the same product each time they will become less and less satisfied. So diminishing utility will cause a decrease in demand.


Increasing marginal utility of goods?

Not possible. Law of Diminishing Marginal utility states that equal additions to a good provide smaller and smaller increases in utility, therefore marginal utility decreases.