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The law of diminishing marginal utility states

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The law of diminishing marginal utility states

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 is B

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.