### Abstract

Diminishing marginal utility (DMU) is neither necessary nor sufficient for downward-sloping demand. Yet, upper-division undergraduate and beginning graduate students often presume otherwise. This paper provides two simple counter-examples that can be used to help students understand that the Law of Demand does not depend on DMU. The examples are accompanied with the geometry and basic mathematics of the utility functions and the implied ordinary/Marshallian demands.

Original language | English (US) |
---|---|

Pages (from-to) | 263-271 |

Number of pages | 9 |

Journal | Review of Agricultural Economics |

Volume | 28 |

Issue number | 2 |

DOIs | |

State | Published - Jun 2006 |

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### ASJC Scopus subject areas

- Agronomy and Crop Science
- Economics and Econometrics

### Cite this

*Review of Agricultural Economics*,

*28*(2), 263-271. https://doi.org/10.1111/j.1467-9353.2006.00286.x

**The law of demand versus diminishing marginal utility.** / Beattie, Bruce R; LaFrance, Jeffrey T.

Research output: Contribution to journal › Article

*Review of Agricultural Economics*, vol. 28, no. 2, pp. 263-271. https://doi.org/10.1111/j.1467-9353.2006.00286.x

}

TY - JOUR

T1 - The law of demand versus diminishing marginal utility

AU - Beattie, Bruce R

AU - LaFrance, Jeffrey T.

PY - 2006/6

Y1 - 2006/6

N2 - Diminishing marginal utility (DMU) is neither necessary nor sufficient for downward-sloping demand. Yet, upper-division undergraduate and beginning graduate students often presume otherwise. This paper provides two simple counter-examples that can be used to help students understand that the Law of Demand does not depend on DMU. The examples are accompanied with the geometry and basic mathematics of the utility functions and the implied ordinary/Marshallian demands.

AB - Diminishing marginal utility (DMU) is neither necessary nor sufficient for downward-sloping demand. Yet, upper-division undergraduate and beginning graduate students often presume otherwise. This paper provides two simple counter-examples that can be used to help students understand that the Law of Demand does not depend on DMU. The examples are accompanied with the geometry and basic mathematics of the utility functions and the implied ordinary/Marshallian demands.

UR - http://www.scopus.com/inward/record.url?scp=33646018586&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=33646018586&partnerID=8YFLogxK

U2 - 10.1111/j.1467-9353.2006.00286.x

DO - 10.1111/j.1467-9353.2006.00286.x

M3 - Article

VL - 28

SP - 263

EP - 271

JO - Applied Economic Perspectives and Policy

JF - Applied Economic Perspectives and Policy

SN - 2040-5790

IS - 2

ER -