Which assumption is not necessary for the Law of Diminishing MU?

CA Foundation · Business Economics · MTP · May 2026
Which assumption is not necessary for the Law of Diminishing MU?
(A) A. Homogeneous units of the commodity
(B) B. Constant marginal utility of money
(C) C. Consumer income changes frequently
(D) D. Consumer tastes remain constant

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Consumer income changes frequently

Topics: Theory of Demand and Supply

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