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The law of diminishing marginal utility states:

The law of diminishing marginal utility states:
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  • 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: Option 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.

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