Discuss how, why (and whether) consumer demand for gasoline changes when the price of gasoline falls. As part of your answer, indicate what role the theory of diminishing marginal utility plays?© BrainMass Inc. brainmass.com December 24, 2021, 6:38 pm ad1c9bdddf
The law of demand states that as the price goes up, the quantity demanded goes down, other things constant. An alternative way of saying the same thing is that price and quantity demanded are inversely related, so the demand curve slopes downward to the right. Thus if the price of gasoline falls then the demand will increase. This is because of the negative relationship ...
The theory of diminishing marginal utility is discussed in 239 words.