Economists believe that people respond in a predictable way to changes in costs and benefits.Which term refers to this phenomenon?
A) opportunity cost
B) scarcity
C) innovation
D) marginal analysis

Question

Economists believe that people respond in a predictable way to changes in costs and benefits.Which term refers to this phenomenon?  
A) opportunity cost 
B) scarcity 
C) innovation 
D) marginal analysis

Quizplus · Accepted Answer

The phenomenon described in the question is known as the law of demand, which states that as the price of a good increases, consumers will demand less of it, and vice versa. This behavior is based on the notion that people respond in a predictable way to changes in costs and benefits, also known as marginal analysis. Therefore, the correct answer is D) marginal analysis.

Economists Believe That People Respond in a Predictable Way to Changes