Q6
An individual demand curve slopes downward to the right because of the
A.
Working of the law of diminishing marginal utility
B.
Substitution effect of decrease in price
C.
Income effect of fall in price
D.
All of the above
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
An individual demand curve slopes downward to the right because of the Working of the law of diminishing marginal utility, Substitution effect of decrease in price and Income effect of fall in price.