Because Successive Units of a Good Produce Less and Less

question 226

Multiple Choice

Because successive units of a good produce less and less additional satisfaction, the price must fall to encourage a buyer to purchase more units of the good. This statement is most consistent with which explanation for the law of demand?

• A) diminishing marginal utility
• B) the rationing function of prices
• C) the substitution effect
• D) the income effect

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Definitions:

Alcoholism

A pattern of behavior in which a person repeatedly abuses or depends on alcohol. Also known as alcohol use disorder.

Suicidal Ideation

The consideration or contemplation of ending one's own life, which can range from fleeting thoughts to detailed planning.

Alcohol Abuse

Excessive drinking leading to health problems and negative social, emotional, or legal consequences.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs.