The "law of diminishing demand" says that:
A) if the price of a product is lowered, usually the same quantity will be demanded.
B) if the price of a product is raised, a smaller quantity will be demanded.
C) the demand for any product will tend to decline over time.
D) the more of a product a person buys, the less utility that particular product offers him.
E) if the price of a product is lowered, a smaller quantity will be demanded.

Question

Quizplus · Accepted Answer

The law of diminishing demand states that as the price of a product increases, the quantity demanded for that product will decrease. This means that consumers will buy less of the product as its price increases. The opposite is also true: as the price of a product decreases, the quantity demanded for that product will increase. This law helps explain the downward slope of a demand curve.

The "Law of Diminishing Demand" Says That