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An individual demand curve slopes downward to the right because of the:

a. Working of the law of diminishing marginal utility.

b. Substitution effect of a decrease in price income.

c. Effect of a fall in price.

d. All of the above.

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Related questions

1. Demand curve normally slopes downward to the right because of all but one of the following factors. Which?

a. Income effect

b. Veblen good effect

c. Law of demand

d. Substitution effect

The labor demand curve of a purely competitive seller:

a. slopes downward because the elasticity of demand is always less than unity.

b. slopes downward because of diminishing marginal utility.

c. slopes downward because of diminishing marginal productivity.

d. is perfectly elastic at the going wage rate

1. If marginal utility is negative, total utility is

a. Positive

b. Negative

c. Decreasing

d. Constant

e. Increasing

2. If utility-maximizing consumers face identical prices, they will have identical

a. Marginal utilities for each good

b. Ratio of marginal utilities for each good

c. Preferences

d. Ratios of total utilities for each good

e. Total utilities for each good

3. The substitution effect

a. Always increases quantity demanded of a good whose relative price has fallen

b. Is opposite in sign to the income effect for all normal goods

c. Is opposite in sign to the income effect for all normal goods

d. May cause demand curves to be upward sloping

e. Is always dominated by the income effect for normal goods

4. Demand curves for normal goods slope downward because

a. The substitution effect of a price change is greater than the income effect

b. Substitution and income effects work in the same direction

c. The income effect is always greater than the substitution effect

d. The income effect is always less than the substitution effect

e. None of the above

5. The idea that a consumer derives less additional satisfaction from consuming successive units of a good is called

a. Diminishing consumer surplus

b. The paradox of value

c. Diminishing marginal utility

d. Diminishing total value of consumption

e. Diminishing total utility

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