MCQOPTIONS
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| 1. |
Increase in price of a product reduces the purchasing power as a result of which demand for a product goes up. This effect is known as |
| A. | Substitution effect |
| B. | Income effect |
| C. | Diminishing marginal utility concept |
| D. | Law of diminishing returns |
| Answer» C. Diminishing marginal utility concept | |