CAIE A-Level Economics 7.1.2 Diminishing marginal utility

CAIE A-Level Economics 7.1.2 Diminishing marginal utility
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise explaining diminishing marginal utility and using it to link extra consumption with satisfaction and demand.

How this is tested

  • 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

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.