Economists explain the law of ______ in terms of the income effect, the substitution effect, and the law of diminishing marginal utility.
A) demand
B) supply
C) rationality
D) price

Question

Quizplus · Accepted Answer

The law of demand is explained through the income effect, the substitution effect, and the law of diminishing marginal utility, which all describe how and why the quantity demanded of a good changes as its price changes.

Economists Explain the Law of ______ in Terms of the Income