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Commerce · Q870

Economics

Graduate and Post Graduate · Commerce · question 870

Q870

A normal demand curve slopes down from left to right. This is based on the assumption that-

A.
price varies directly with quantity demanded
B.
marginal utility diminishes as price rises
C.
there will be a fewer purchases at a higher price than at a lower price
Answer
D.
income is fixed and so total expenditure on the commodity is limited

Answer: Option C

Solution

Answer: Option C
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