The following are explanations of the Law of Demand, except
A) expectations effect.
B) diminishing marginal utility.
C) income effect.
D) substitution effect.

Question

Quizplus · Accepted Answer

The expectations effect is not a part of the Law of Demand, but rather a factor that can influence consumer behavior and purchasing decisions. The Law of Demand states that as the price of a good or service increases, the quantity demanded decreases, and vice versa. The reasons behind this include the income effect (as the price of a good increases, consumers may feel like they have less disposable income to spend on other goods), the substitution effect (as the price of one good increases, consumers may switch to a cheaper substitute), and diminishing marginal utility (as a consumer purchases more of a good, the satisfaction they derive from each additional unit decreases).

The Following Are Explanations of the Law of Demand, Except