The law of demand implies that the demand curve
A) has a negative slope.
B) has a positive slope.
C) shifts to the right when the price of a good increases.
D) shifts to the left when the price of a good decreases.

Question

Quizplus · Accepted Answer

The law of demand states that as the price of a good increases, the quantity demanded of the good decreases, holding all other factors constant. This relationship between price and quantity demanded is illustrated by a downward-sloping demand curve, which shows the amount of a good consumers are willing and able to buy at each price. Therefore, the correct choice is A, as the negative slope of a demand curve reflects the inverse relationship between price and quantity demanded. Choices B, C, and D are all incorrect, as they do not accurately reflect the law of demand.

The Law of Demand Implies That the Demand Curve