The Average Demand Curve Slopes Downward Due to All of the Following

question 138

Multiple Choice

The average demand curve slopes downward due to all of the following EXCEPT

• A) the law of increasing relative costs.
• B) the laws of diminishing marginal utility.
• C) the real-income effect.
• D) the principle of substitution.

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Definitions:

Word-Of-Mouth Testimonials

Consumer recommendations and opinions communicated verbally, considered a powerful form of promotion due to its perceived authenticity and trustworthiness.

Reference Groups

People to whom an individual looks as a basis for self-appraisal or as a source of personal standards.

Self-Appraisal

The process of evaluating one's own performance, strengths, and weaknesses, often used in professional development contexts.

Personal Standards

Individual criteria or guidelines set by oneself that dictate one's quality of work, behavior, and lifestyle.