Question

According to the concept of utility, why does demand usually rise when price falls?

पर्याय

• Consumers become wealthier

• Utility increases for each product

• Sellers offer more discounts

• Lower prices allow more units to be purchased, maximising satisfaction

Answer 1

Lower prices allow more units to be purchased, maximising satisfaction

Explanation:

When prices drop, consumers can buy more, increasing their total satisfaction within their income limits.