Because successive units of a good produce less and less additional satisfaction, the price must fall to encourage a buyer to purchase more units of the good. This statement is most consistent with
Which explanation for the law of demand?
A) diminishing marginal utility
B) the rationing function of prices
C) the substitution effect
D) the income effect
Correct Answer:
Verified
Q1: According to the concept of diminishing marginal
Q2: Steve went to his favorite hamburger restaurant
Q4: Graphically, the market demand curve is
A) steeper
Q5: Markets, viewed from the perspective of the
Q6: A market
A) reflects upsloping demand and downsloping
Q7: The relationship between quantity supplied and price
Q8: When the price of a product rises,
Q9: A recent study found that an increase
Q10: Economists use the term "demand" to refer
Q11: (Advanced analysis) The equation for the demand
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