Problemas
As prices for o product decrease demand for a product should increase. elosticity low of demand diminishing marginal utility income effect
Roztwór
Roberto
veterano · Tutor durante 10 años
3.9
(331 Votos)
Respuesta
The correct answer is 'B', the Law of Demand.
Explicación
## Step 1The problem statement is a fundamental principle in economics known as the "Law of Demand". This law states that, all other factors being equal, as the price of a product decreases, the quantity demanded of that product will increase. This is because consumers are more likely to buy a product when it is cheaper.## Step 2The other options provided, "elosticity", "diminishing marginal utility", and "income effect", are also economic principles, but they do not directly describe the relationship between the price of a product and the demand for it.## Step 3"Elosticity" is not a recognized term in economics, so it can be disregarded.## Step 4"Diminishing marginal utility" refers to the principle that as a person increases consumption of a product, there is a decline in the marginal utility (satisfaction) that person receives from consuming an additional unit of that product. This principle does not describe the relationship between the price of a product and the demand for it.## Step 5"Income effect" refers to the change in demand for a good or service caused by a change in a consumer's income. This principle also does not describe the relationship between the price of a product and the demand for it.