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WAEC Economics 2012 Question 9

Question 9

Theory of Demand

The demand curve for a commodity is downward sloping because the consumer will pay

  1. A.less as the marginal utility falls.
  2. B.more as the marginal utility falls.
  3. C.less as the total utility falls.
  4. D.more as the average utility falls.
Show the answer and explanation

Answer: A (less as the marginal utility falls.)

Explanation

Each extra unit gives less satisfaction, so the consumer will buy more only at a lower price.