ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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diminishing marginal utility.
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price equilibrium.
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complements.
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substitutes,
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Detailed explanation-1: -According to the law of diminishing marginal utility, as the consumption of good increases the additional amount of happiness the good provides the consumer decreases.
Detailed explanation-2: -As we can see on the demand graph, there is an inverse relationship between price and quantity demanded. Economists call this the Law of Demand. If the price goes up, the quantity demanded goes down (but demand itself stays the same). If the price decreases, quantity demanded increases.
Detailed explanation-3: -The higher the price, the more suppliers are likely to produce. Conversely, buyers tend to purchase more of a product the lower its price. The equation that spells out the quantities consumers are willing to buy at each price is called the demand curve.