The demand curve for a typical good has
A)a negative slope because some consumers switch to other goods as the price of the good rises.
B)a negative slope because the supply of the good rises as demand rises.
C)a negative slope because the good has less "snob appeal" as its price falls.
D)an inverse slope because as the price goes up, the good has more profitability.
E)a positive slope because price is a clear indicator of need.

Question

Quizplus · Accepted Answer

The demand curve for a typical good has a negative slope because some consumers switch to other goods as the price of the good rises. This is known as the law of demand which states that as the price of a good increases, the quantity demanded decreases. As the price decreases, the quantity demanded increases. This is because as the price of a good increases, consumers may switch to cheaper substitutes or reduce their overall demand.

The Demand Curve for a Typical Good Has