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Which of the following is the basis of diminishing marginal utility?A) Law of demandB) Laws of returnC) Law of supplyD) None of the above

1 Answer

2 votes

Answer:

A) Law of demand

Step-by-step explanation:

Diminishing marginal utility is the basis of Law of demand. When the price of a goods falls, downward sloping marginal utility curve implies that the consumers must buy more of the good so that its marginal utility falls and becomes equal to the new price.

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