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AP® Microeconomics

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Demand: Explanation for Law of Demand

APMICR-SS4XKG

The law of demand says that consumers will generally purchase smaller quantities of a product for which the price increases. This can be explained by

A

the income effect.

B

the substitution effect.

C

increasing marginal utility.

D

both 'A' and 'B'.

E

both 'A' and 'C'