Economics (AS & A Level) · Feb / March 2022 · Paper 32 · Question 4

How can the concept of marginal utility explain the shape of the downward sloping demand curve?

1. AConsumer tastes and preferences only change when their spending power increases.
2. BExtra utility gained from consuming successive units of a good will fall continuously.
3. CSatisfaction of consuming one more unit of a good is greater than the loss of money spent.
4. DTotal utility gained from buying more and more units of a good will continue to increase indefinitely.

As printed in the paper