"By using the law of diminishing marginal utility, Marshall derived the law of demand, which shows that there exists an inverse relationship between price and the quantity demanded of a good. Comment.

Marshall's law of diminishing marginal utility explains the inverse relationship between the price and the quantity demanded of a good in the law of demand. As consumers consume more units of a good, the additional satisfaction (marginal utility) gained decreases due to this law. When the price of a good is high, consumers are unwilling to buy large quantities since the satisfaction gained from additional units is not worth the cost. Conversely, when the price is low, consumers tend to buy more units since the marginal utility is greater than the price. Consequently, the law of diminishing marginal utility demonstrates why consumers buy less of a good when its price is high and more when its price is low, giving rise to the law of demand.