One Reason That Helps to Explain the Law of Demand

question 6

Multiple Choice

One reason that helps to explain the law of demand is the law of

• A) diminishing marginal utility.
• B) diminishing marginal returns.
• C) increasing opportunity costs.
• D) supply.

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Definitions:

Legal Factors

Elements of the law that influence or affect business operations and strategy, including regulations, compliance issues, and legal disputes.

Economic Factors

These are variables and conditions that affect the economic performance of markets and businesses, such as inflation rates, unemployment levels, and interest rates.

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Shares that grant the holder the right to vote on company matters, such as the election of the board of directors.

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An accounting term denoting the portion of the company held by the shareholders at accounting value, not market value.