Because Successive Units of a Good Produce Less and Less

question 199

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:

Margin of Error

Margin of error is a statistic expressing the amount of random sampling error in a survey's results, indicating a confidence interval within which the true population parameter is likely to lie.

Large Animals

Typically refers to animals of significant size, often considered in contexts such as veterinary science, agriculture, or wildlife studies.

Statistical Significance

A determination that a relationship between variables is caused by something other than chance at a specified confidence level.

True Proportion

The actual ratio or fraction of a population that possesses a particular attribute or characteristic.