Using the following concepts, explain why price and quantity demanded have an inverse relationship.   (i)        the income effect (ii)       the substitution effect (iii)      the Law of Diminishing Marginal Utility

Economics Today and Tomorrow, Student Edition
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ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter7: Demand And Supply
Section7.1: Demand
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Using the following concepts, explain why price and quantity demanded have an inverse relationship.

 

(i)        the income effect

(ii)       the substitution effect

(iii)      the Law of Diminishing Marginal Utility

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