The explanation for the law of demand involves:
A. suppliers’ ability to substitute inputs.
B. consumers’ ability to substitute different goods.
C. the government’s ability to set prices.
D. the market’s ability to equate supply and demand.
Answer:B
The explanation for the law of demand involves:
A. suppliers’ ability to substitute inputs. B. consumers’ ability to substitute different goods. C. the government’s ability to set prices. D. the market’s ability to equate supply and demand.
Explanation: The explanation for the law of demand, as stated in the text, involves demanders’ ability to substitute some other good for the good whose price has risen.