explain the causes behind low of demand
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explain the causes behind low of demand
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According to Classical approach, the most important reason behind law of demand is 'law of diminishing marginal utility' but the modem economists believe income effect and substitution effect as the main causes. ... Thus law of diminishing marginal utility explains the downward slope of demand curve.
Answer:
According to Classical approach, the most important reason behind law of demand is 'law of diminishing marginal utility' but the modem economists believe income effect and substitution effect as the main causes. ... Thus law of diminishing marginal utility explains the downward slope of demand curve.