The figure given below represents the PPC in two nations

Question

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4
 
-The demand curve of a commodity slopes downward because of:
A)the insatiable nature of human wants. 
B)the presence of double coincidence of wants. 
C)the law of demand. 
D)the scarcity of goods and services in an economy. 
E)the law of diminishing marginal utility.

Quizplus · Accepted Answer

The demand curve slopes downward due to the law of demand, which states that as the price of a good or service increases, the quantity demanded decreases, ceteris paribus. This is because consumers are more likely to purchase a good or service at a lower price than at a higher price, all else equal. The other options are not applicable to the downward slope of the demand curve.