Economics 9708 · AS & A Level · Utility and rational consumer behaviour

Utility and rational consumer behaviour — practice question

In what way can the idea of marginal utility account for the downward-sloping shape of the demand curve?

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

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI