Which of the following statements about the demand curve for a typical good is the most accurate?
A) It has an inverse slope because as the price goes up, the good has more profitability.
B) It has a negative slope because consumer incomes fall as the price of the good rises.
C) It has a negative slope because some consumers switch to other goods as the price rises.
D) It has a negative slope because the good has less "snob appeal" as its price falls.

Question

Quizplus · Accepted Answer

The negative slope of the demand curve indicates that as the price of the good increases, some consumers may switch to alternatives that are less expensive. This is because at higher prices, the good becomes relatively more expensive compared to other options, reducing the quantity demanded. Therefore, option C is the most accurate statement about the demand curve for a typical good. Options A, B, and D are incorrect because they do not explain the negative slope of the demand curve.

Which of the Following Statements About the Demand Curve for a Typical