Question

How does the law of demand reflect the law of diminishing marginal utility? Illustrate.

How does the law of demand reflect the law of diminishing marginal utility? Illustrate.

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Answer #1

Can be mentioned that the law of demand perfectly depicts the law of diminishing marginal utility. In the law of demand as the quantity demanded increases the price keeps on decreasing and that is the reason why it is inversely sloped curve and this means as people move on towards more quantity , they are likely to pay a less and this is because the satisfaction they are getting from each subsequent good is less than that of previous one. and this decreasing additional satisfaction with each amount of good is nothing but law of diminishing marginal returns

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