In micro-economics, why is a demand curve downwards sloping?

A downwards sloping demand curve in a supply and demand diagram for micro-economics sits on a X axis named quantity and Y axis named price. The demand curve is linear and slops downwards start from Q=0 and P=X. A rational consumer can conclude that on any given point along the demand curve, as you move along it, quantity increases as price decreases, which is expected of consumer behaviour.However, economists have gone on to say it is also because of marginal utility. Utility is the total satisfaction received by the consumer, and the maximum price the consumer is willing and able to pay represents this metric on the demand curve. The theory suggests that after reaching a certain quantity, the consumer will no longer be as satisfied as their first purchase, hence a decrease in utility, meaning a decreasing marginal utility. Hence, the more a good or service a consumer uses, the less marginal utility per additional unit is received, resulting in a downwards sloping curve.

HB
Answered by Hugh B. Economics tutor

2217 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

Explain why a firm in perfect competition can not experience abnormal profit in the long run.


Explain price elasticity of demand and how this may impact government taxation


What does it take to make a 7 in HL Economics?


Describe the impact of the tightening of the monetary policy by the central bank on consumer spending.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning