A demand curve indicates that:
A) the quantity demanded of a good is higher when its price is higher.
B) the quantity demanded of a good is higher when its price is lower.
C) the demand for a good is higher when its price is lower.
D) the demand for a good is higher when its price is higher.

Question

Quizplus · Accepted Answer

The demand curve shows the relationship between the price of a good and the quantity of that good that consumers are willing and able to buy. According to the law of demand, as the price of a good increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases. Therefore, the demand curve slopes downward from left to right, indicating that the quantity demanded is higher when the price is lower.

A Demand Curve Indicates That