A typical demand curve shows that
A) as people earn higher wages, they buy more of a specific good.
B) as supply increases, the amount purchased decreases.
C) people tend to buy more of a good than they really want.
D) people tend to buy more of a good when its price decreases.

Question

Quizplus · Accepted Answer

A demand curve shows the relationship between the price of a good and the quantity of the good that people are willing and able to buy. Generally, as the price of a good decreases, people are willing and able to buy more of it, which is why the demand curve slopes downward from left to right. Therefore, people tend to buy more of a good when its price decreases.

A Typical Demand Curve Shows That