Question

When the price of a product decreases, the purchasing power of our income increases and thus permits consumers to purchase more of the product. This statement describes:

1) Law of Demand
2) Law of Supply
3) Law of Diminishing Marginal Utility
4) Law of Increasing Opportunity Cost

Answer 1

The Law of Demand states that consumers will purchase more of a product when the price decreases, allowing them to buy more of it.

Step-by-step explanation:

The statement that describes when the price of a product decreases, the purchasing power of our income increases and thus permits consumers to purchase more of the product is the Law of Demand. The Law of Demand states that consumers will purchase more of a good when the price is lower and less when the price is higher. This is because a decrease in price makes the good more affordable, allowing consumers to buy more of it.