Assertion (A): The law of diminishing marginal utility is the basis of the law of demand.
Reason (R): A consumer buys more of a good only when its price falls, because each extra unit is worth less to him.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Both are true.
R spells out how diminishing MU leads to a downward-sloping demand curve, so it explains A.

Concept: From DMU to the law of demand
Typical timeTypical: 100 s
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The rule this testsDiminishing marginal utility

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Ten questions from Utility & Consumer's Equilibrium, at your own pace.

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Assertion (A): The law of diminishing marginal utility is the basis of the law of demand.Reason (R): A consumer buys more of a good only when its price falls, because each extra unit is worth less to him.

Explanation

Assertion (A): The law of diminishing marginal utility is the basis of the law of demand.
Reason (R): A consumer buys more of a good only when its price falls, because each extra unit is worth less to him.