Question
Which of the following is/are the causes of demand
curves moving downwards to the right?Solution
When the quantity of goods is more, the marginal utility of the commodity is less. Thus, the consumer is not willing to pay more price for the commodity and its demand will decline. Also, when the price of the commodity is low, its demand increases. The income effect identifies the change in consumers' demand for goods and services based on their incomes.
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