Ask Question
BusinessBusiness
10 October, 18:40

Because successive units of a good produce less and less additional satisfaction, the price must fall to encourage a buyer to purchase more units of the good. This statement is most consistent with which explanation for the law of demand? A) the rationing function of pricesC) the substitution effectB) diminishing marginal utilityD) the income effect

+5
Answers (1)
  1. 10 October, 20:13
    0
    B) diminishing marginal utility

    Explanation:

    The law of Diminishing marginal utility states that utility falls as consumption increases.

    The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

    Because of diminishing marginal utility, consumption can be encouraged by reducing price.

    As utility falls, consumers would be unwilling to buy more goods at the same price, therefore it would be reasonable to reduce price to encourage consumption.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Because successive units of a good produce less and less additional satisfaction, the price must fall to encourage a buyer to purchase more ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
On October 5, 2019, you purchase a $14,000 T-note that matures on August 15, 2031 (settlement occurs two days after purchase, so you receive actual ownership of the bond on October 7, 2019). The coupon rate on the T-note is 4.
Answers (1)
The chart describes how four of Susan's friends handle their money. Handling Money Person Description of Spending Sylvia She uses her whole paycheck to buy food and necessities and pay the minimum amount on her bills each month.
Answers (1)
A random sample of 16 students selected from the student body of a large university had an average age of 25 years and a standard deviation of 2 years.
Answers (1)
The end goal of the Executive order is to provide what to the patients
Answers (1)
On November 10 of the current year, Cherokee Industries sold materials to a customer for $8,000 with credit terms 2/10, n/30. Cherokee uses the net method of accounting for cash discounts. What entry would Cherokee make on November 10? a.
Answers (1)
New Questions in Business
Marks Corporation's balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $ 47 $ 37 Accounts receivable 53 57 Inventory 63 60 Property, plant, and equipment 548 440 Less accumulated
Answers (1)
What happens to prices and wages during an expansion?
Answers (1)
Suppose that the equilibrium price of greeting cards declined at the same time the equilibrium quantity of greeting cards increased. Which one of the following would most likely be responsible? a.
Answers (1)
You plan to borrow $ 2 comma 000 from a bank. In exchange for $ 2 comma 000 today, you promise to pay $ 2 comma 100 in one year. What does the cash flow timeline look like from your perspective? What does it look like from the bank's perspective?
Answers (1)
Which of the following is indicative of a short-term restrictive financial policy? a) purchasing inventory only as needed b) granting credit to more customers c) increased investment in marketable securities d) maintaining a large accounts
Answers (2)
Home » Business » Because successive units of a good produce less and less additional satisfaction, the price must fall to encourage a buyer to purchase more units of the good.
Sign Up Forgot Password?