A typical demand curve slopes downward from left to right because

JAMB Economics 2024 132 views
Source: JAMB · 2024

A typical demand curve slopes downward from left to right because

  1. Buyers prefer low quality goods
  2. Higher prices attract more consumers
  3. Consumers buy more when prices fall ✓
  4. Supply increases as prices rise
Explanation

The demand curve slopes downward because of the law of demand. When prices drop, people buy more goods.

Higher prices do not attract more consumers. Quality preference does not explain the curve shape.

Price and quantity demanded move in opposite directions on a demand curve.

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