Soru
9) The negative value of the price elasticity of demand for a good can be attributed to __ A) the Law of Supply B) the Law of Demand C) the Law of Diminishing Marginal Rate of Substitution D) the Law of Increasing Marginal Utility
Çözüm
4.1
(289 Oylar)
Erkan
Profesyonel · 6 yıl öğretmeni
Uzman doğrulaması
Cevap
The correct answer is B) the Law of Demand.The negative value of the price elasticity of demand for a good can be attributed to the Law of Demand. The Law of Demand states that, all else being equal, as the price of a good or service increases, the quantity demanded decreases, and vice versa. This inverse relationship between price and quantity demanded is what gives rise to the negative value of price elasticity of demand.Option A) the Law of Supply is not the correct answer because it refers to the relationship between price and quantity supplied, not quantity demanded.Option C) the Law of Diminishing Marginal Rate of Substitution is not the correct answer because it refers to the rate at which consumers are willing to exchange one good for another, not the relationship between price and quantity demanded.Option D) the Law of Increasing Marginal Utility is not the correct answer because it refers to the principle that as a person consumes more units of a good, the additional satisfaction or utility they derive from each additional unit increases. This principle is not directly related to the relationship between price and quantity demanded.