How does diminishing marginal utility affect demand

Chapter 0, Problem 4

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QUESTION:

How does diminishing marginal utility affect demand?

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QUESTION:

How does diminishing marginal utility affect demand?

ANSWER:

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Diminishing marginal utility has a significant impact on demand. It refers to the concept that as individuals consume more units of a good or service, the additional satisfaction or utility they derive from each additional unit decreases.

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