Answer to Question #323737 in Economics for Lina

Question

4. A demand curve normally slopes down from left to right. What does this indicate about consumer behaviour with regard to price and quantity demanded ? How does marginal utility help to explain this consumer behaviour and thus, the direction of the demand curve ?

Answer 1

The quantity demanded decreases with the price growth and vice versa. Marginal utility decreases while the quantity consumed rises. That's why the consumers are not ready to pay a lot when the quantity consumed increases.