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:

Perceptual Selection

The process by which individuals select, organize, and interpret sensory information in the world around them.

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.

Pollyanna Principle

The tendency for people to remember pleasant items or experiences more accurately than unpleasant ones.

Perceptual Selection

The process by which individuals filter and select informational cues from the environment based on relevance and personal biases.