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You have learned that the demand curve is downward-sloping because of diminishing marginal benefit. When you apply this idea to your total income, you find
You have learned that the demand curve is downward-sloping because of diminishing marginal benefit. When you apply this idea to your total income, you find that: as your income decreases, your purchasing power increases. each dollar you get tends to give you more benefit than the previous dollar. as your income increases, your benefits increase by the same amount. each dollar you get tends to yield you less utility than the previous dollar
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