Substitution and income effects and the law of demand
3:48
Khan AcademySal Khan
Substitution and income effects and the law of demand
Learn about the Law of Demand, which shows that as prices decrease, quantity demanded increases. Explore three reasons for this: substitution effect (buying cheaper alternatives), income effect (extra money to spend), and decreasing marginal utility (less value from additional units), and see how each creates a downward-sloping demand curve.
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