A demand curve
A) slopes down because of the inverse relationship between price and quantity demanded.
B) slopes up because of the direct relationship between price and quantity demanded.
C) can slope up or down depending on the tastes of the consumer.
D) is vertical for necessities, upward sloping for luxury goods, and downward sloping for all other goods.

Question

Quizplus · Accepted Answer

The demand curve slopes down because of the inverse relationship between price and quantity demanded. As the price of a good or service increases, consumers demand less of it because they are less willing or able to pay the higher price. Similarly, as the price of a good or service decreases, consumers demand more of it.

A Demand Curve