According to Hicks and Allen the demand curve slope downwards due to ____

CA Foundation · Business Economics · RTP · September 2025
According to Hicks and Allen the demand curve slope downwards due to ____
(A) A. Law of diminishing marginal utility
(B) B. Income effect and substitution effect
(C) C. Either (a) or (b)
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Income effect and substitution effect

Topics: Theory of Demand and Supply

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