Scenario 14.1
A worker in Firm A earns an income of $5,000 per month. He has been offered a job in Firm B where he will be paid a salary of $7,000 per month.
-The negative slope of the demand curve of a resource indicates an inverse relationship between the price of the resource and the quantity demanded.

Question

Quizplus · Accepted Answer

This statement is true as per the law of demand, which states that as the price of a resource (or any good or service) increases, the quantity demanded decreases, and vice versa. Therefore, the demand curve of a resource will have a negative slope to represent this inverse relationship between price and quantity demanded.

Scenario 14.1 A Worker in Firm a Earns an Income of $5,000