Figure 5-3
-Market demand curves may slope downward even if some individual demand curves do not because

Question

Figure 5-3 
-Market demand curves may slope downward even if some individual demand curves do not because

Quizplus · Accepted Answer

The market demand curve represents the combined individual demands of all consumers in the market. Even if some individual demand curves do not slope downward, the overall demand curve may still slope downward because lower prices can attract more purchasers into the market. This is consistent with the law of demand, which states that as the price of a good decreases, the quantity demanded increases. Option A is incorrect because the law of demand is not the reason why market demand curves may slope downward, but rather the law of demand explains why individual demand curves slope downward. Option C is also incorrect because merchants may choose to lower prices in order to increase sales, but this does not explain why the market demand curve slopes downward. Option D is incorrect because the belief that expensive goods are better goods may affect individual demand, but it is not a sufficient explanation for the slope of the market demand curve.

Figure 5-3 -Market Demand Curves May Slope Downward Even If Some Individual