The correct answer is: B. Entry and exit of buyers
The inverse relationship between the variation in the price and the variation in the quantity demanded is due to the law of demand. The law of demand states that, all other things being equal, the quantity demanded of a good or service will decrease as the price of that good or service increases. This is because consumers have a limited amount of money to spend, and they will generally choose to spend their money on goods and services that provide them with the most satisfaction. When the price of a good or service increases, consumers will have less money to spend on other goods and services, and they will therefore demand less of that good or service.
Entry and exit of buyers does not affect the law of demand. The law of demand is a general law that applies to all goods and services, regardless of whether there are many buyers or few buyers in the market.
Gossen’s laws of consumption are a set of three laws that describe how consumers make decisions about how to allocate their limited resources. The first law of consumption states that the marginal utility of a good or service declines as the consumer consumes more of that good or service. The second law of consumption states that a consumer will maximize their utility by allocating their resources so that the marginal utility of each good or service is equal. The third law of consumption states that a consumer will not consume more of a good or service if the marginal utility of that good or service is negative.
Gossen’s laws of consumption do not affect the law of demand. The law of demand is a law that describes how consumers respond to changes in the price of a good or service, while Gossen’s laws of consumption are laws that describe how consumers make decisions about how to allocate their limited resources.
The law of substitution is a law that states that, all other things being equal, consumers will substitute goods and services that are relatively cheaper for goods and services that are relatively more expensive. For example, if the price of coffee increases, consumers will substitute tea for coffee.
The law of substitution does not affect the law of demand. The law of demand is a law that describes how consumers respond to changes in the price of a good or service, while the law of substitution is a law that describes how consumers substitute goods and services for each other.