The demand curve for oil has a _____ slope because a _____ price of oil signals consumers to use oil in _____ valuable uses.
A) negative; higher; less
B) negative; lower; more
C) positive; higher; more
D) negative; lower; less

Question

Quizplus · Accepted Answer

The demand curve for oil has a negative slope because a lower price of oil signals consumers to use oil in more valuable uses. As the price of oil decreases, consumers are incentivized to use more oil for less valuable uses, such as leisurely driving or unnecessary heating, rather than conserving it for more valuable uses, such as transportation or heating in cold weather.

The Demand Curve for Oil Has a _____ Slope Because