Post Utme Summit University 2022 Commerce Question 21

Practice objective / multiple choice question 21 from the 2022 Post Utme Summit University Commerce examination.

Post Utme Summit University 2022 Commerce Objective / Multiple Choice
Question 21 POST_UTME_SUMMIT_UNIVERSITY • 2022 • COMMERCE • objective

In a perfectly competitive market, the law of diminishing marginal utility leads to a downward-sloping demand curve for a firm's product. What is the primary reason for this downward slope?

Answer Options

Correct Answer A. As consumers become satiated with the product, their willingness to pay decreases.
B. The product's quality decreases as the quantity consumed increases.
C. The product's price increases as the quantity consumed increases.
D. The product's demand is inelastic.
Correct Answer
A
Correct Option:
As consumers become satiated with the product, their willingness to pay decreases.

About This Question

This is Post Utme Summit University 2022 Commerce Question 21. It is one of the objective questions from the 2022 Post Utme Summit University Commerce examination.

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