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24 January, 05:41

According to the concept of diminishing marginal utility, consumers will

purchase more of a good when the price falls because

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Answers (1)
  1. 24 January, 06:10
    0
    Consumers' real income has increased.

    Explanation:

    According to the law of diminishing return, customers' will buy more of a product when price falls, because a fall in price increases the real income of consumers'. They can buy more goods and services since a fall in price, increases the purchasing power of the consumers'. Increase in real income means consumers' can buy more with the same amount of money.
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