A. The supply curve slopes downward B. Your utility grows at a slower and slower rate as you consume more and more unit of a good. C. The elasticity of demand is infinite D. None of the above
Correct Answer: B
Explanation
The law of diminishing marginal utility states that the Satisfaction derived from consuming successive units of a commodity will diminish as the total consumption of the commodity increases. In other words, the total utility increases as more of a commodity is consumed but increases at a diminishing rate.
