asked 75.0k views
14 votes
What is the effect of diminishing marginal utility on quantity demanded?

asked
User Kirubel
by
7.9k points

1 Answer

6 votes

Answer:

The theory of diminishing marginal utility suggests that the quantity of a good demanded by consumers as the good is used becomes smaller and smaller. This has an impact on the demand curve for a good. It is often the case that when the supply of a good becomes larger, the demand for the good decreases. This is due to the fact that when the supply of a good increase, consumers have a greater amount of other goods and services that they can consume.

Step-by-step explanation:

.

answered
User Camaleo
by
9.1k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.