For the vast majority of goods, demand curves slope downward because
A.marginal utility rises as quantity demanded increases.
B.the substitution effect constitutes almost the entire effect of a price change, and this effect always
causes quantity demanded and price to be inversely related.
C.the income effect constitutes almost the entire effect of a price change, and this effect always causes quantity demanded and price to be inversely related.
D.the income and substitution effects work in opposite directions.

Question

Quizplus · Accepted Answer

The Answer of For the vast majority of goods, demand curves slope downward because
A.marginal utility rises as quantity demanded increases.
B.the substitution effect constitutes almost the entire effect of a price change, and this effect always
causes quantity demanded and price to be inversely related.
C.the income effect constitutes almost the entire effect of a price change, and this effect always causes quantity demanded and price to be inversely related.
D.the income and substitution effects work in opposite directions.

For the Vast Majority of Goods, Demand Curves Slope Downward