The law of diminishing marginal utility helps to explain the

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How many video games is Kent willing to buy at a price of $45? How does the law of diminishing marginal utility explain his refusal to buy more games at that price?

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Answer:

The law of diminishing marginal utility helps to explain the negative slope of the demand curve and the law of demand. ... If the satisfaction obtained from a good decline, then buyers are willing to pay a lower price, hence demand price is inversely related to quantity demanded, which is the law of demand.

Explanation:

The price a consumer is willing to pay for a good depends on his marginal utility, which declines with each additional unit of consumption, according to the law of diminishing marginal utility. Therefore, the price decreases for a normal good when consumption increases.


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