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Commerce · Q192

Economics

Graduate and Post Graduate · Commerce · question 192

Q192

Law of substitution is another name for law of

A.
Law of diminishing MU
B.
Law of Equi-MU
Answer
C.
Law of demand
D.
Satisfaction

Answer: Option B

Solution

Answer: Option B
Solution:
Law of substitution is another name for law of Law of Equi-MU. The Law of equimarginal Utility is another fundamental principle of Econo­mics. This law is also known as the Law of substitution or the Law of Maxi­mum Satisfaction.