Question: Which statement(s) below CORRECTLY explain the relationship between utility and demand? 1. Demand is downward sloping due to diminishing marginal utility. 2. Diminishing marginal utility

1. Demand is downward sloping due to diminishing marginal utility. 2. Diminishing

Which statement(s) below CORRECTLY explain the relationship between utility and demand? 1. Demand is downward sloping due to diminishing marginal utility. 2. Diminishing marginal utility explains why a consumer is willing to pay less for each additional unit of a good. 3. Demand depends on prices and quantities. Utility is not really a factor unless demand is elastic. O a. statements 1 and 2 (not 3) O b. statements 1 and 3 (not 2) O c. statements 1, 2, and 3 (all are correct) O d. statements 2 and 3 (not 1)

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