Marginal Utility Analysis Predicts a Downward- Sloping Demand Curve for Good

Multiple Choice

Marginal utility analysis predicts a downward- sloping demand curve for good X because

A) utility- maximizing consumers equate marginal utility received for each product consumed.
B) all demand curves are downward sloping, regardless of the behaviour of consumers.
C) as PX falls, the ratio MUX/PX becomes smaller, causing the consumer to purchase more of good X.
D) as PX falls, the consumer increases purchases of X such that MUX/PX is equal to MU/P for all other products.
E) as PX rises, the consumer increases purchases of X such that MUX/PX is equal to MU/P for all other products.