The consumer demand curve for a product is downsloping because marginal utility is constant when price declines.<\/p>\n\n\n\n
True<\/p>\n\n\n\n
False<\/p>\n\n\n\n
The correct answer and explanation is :<\/strong><\/mark><\/p>\n\n\n\n Correct Answer: False<\/strong><\/p>\n\n\n\n The consumer demand curve for a product is downsloping<\/strong>, but not<\/strong> because marginal utility is constant<\/em> when the price declines. In fact, the correct economic reasoning is that the demand curve slopes downward because marginal utility diminishes<\/strong> as consumption increases, and consumers respond to price changes in a way that reflects this principle.<\/p>\n\n\n\n Marginal Utility<\/strong> refers to the additional satisfaction a consumer receives from consuming one more unit of a good. According to the Law of Diminishing Marginal Utility<\/strong>, as a person consumes more units of a product, the additional (marginal) utility derived from each successive unit tends to decrease. This concept is central to understanding consumer behavior.<\/p>\n\n\n\n When the price of a product falls<\/strong>, the opportunity cost of buying that product decreases<\/strong>, making it relatively more attractive compared to other goods. As a result, consumers are willing to purchase more of the product, even though the marginal utility of additional units may be lower. This behavior is what creates a negatively sloped (downward-sloping) demand curve<\/strong>: lower prices lead to higher quantities demanded.<\/p>\n\n\n\n If marginal utility were constant<\/strong> when price declines, consumers would gain the same satisfaction from each unit regardless of how many they consumed. In such a hypothetical case, the demand curve might be flat (perfectly elastic)<\/strong> or take some other shape, but it would not necessarily be downward sloping in the traditional sense.<\/p>\n\n\n\n Thus, the correct explanation for the downward slope of the demand curve lies in the interaction between diminishing marginal utility<\/strong> and the consumer\u2019s effort to maximize total utility<\/strong> within their budget constraints.<\/p>\n\n\n\n In summary, the demand curve is downsloping because marginal utility diminishes<\/strong>, not because it stays constant. This reflects rational consumer choice in response to changing prices.<\/p>\n","protected":false},"excerpt":{"rendered":" The consumer demand curve for a product is downsloping because marginal utility is constant when price declines. True False The correct answer and explanation is : Correct Answer: False Explanation (Approx. 300 Words): The consumer demand curve for a product is downsloping, but not because marginal utility is constant when the price declines. In fact, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-209354","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/209354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=209354"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/209354\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=209354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=209354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=209354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Explanation (Approx. 300 Words):<\/h3>\n\n\n\n