Describe one of the two reasons given in the textbook to help explain why price and quantity demanded are inversely related

One reason that price and quantity demanded are inversely related is that people substitute lower priced goods for higher priced goods. As the price of one good rises, people will tend to shift away from consuming that good (reducing the quantity demanded), toward one that is relatively lower priced. The second reason that helps to explain this inverse relationship is the law of diminishing marginal utility. The law of diminishing marginal utility states that the marginal utility of equal successive units consumed tends to decline as more units are consumed. Since people tend to receive more marginal utility from the first unit consumed than from the second unit, it makes logical sense that they would be willing to pay more for the first unit than for successive units. In order to encourage the buyer to purchase more units, the seller must lower the price.