CAIE A-Level Economics 7.1.2 Diminishing marginal utility
Practise explaining diminishing marginal utility and using it to link extra consumption with satisfaction and demand.
- Syllabus
- 2026–2028
- Course
- Economics 9708
- Level
- A2
Exam points
- explain why extra units add less satisfaction as consumption of a good increases
- link diminishing marginal utility to the downward slope of an individual's demand curve
7.1.2—Diminishing marginal utility question 1
[Maximum number: 1]
Economists normally assume that the marginal utility from consuming additional goods is positive and diminishing.
What is the effect on total satisfaction of consuming extra units of the good?
A
Total satisfaction falls at a decreasing rate.
B
Total satisfaction falls at an increasing rate.
C
Total satisfaction rises at a decreasing rate.
D
Total satisfaction rises at an increasing rate.
C
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