The demand curve is downward sloping because:
A) Producers are willing to supply more of the good only at higher prices.
B) Consumers are willing to buy less of the good only at lower prices.
C) Producers are willing to supply more of the good only at lower prices.
D) Consumers are willing to buy more of the good only at lower prices.

Question

Quizplus · Accepted Answer

The demand curve is downward sloping because consumers are willing to buy more of the good only at lower prices. As the price of the good decreases, consumers are more likely to purchase it due to the lower cost, resulting in a higher quantity demanded. This leads to a negative relationship between the price and quantity demanded, hence a downward sloping demand curve.

The Demand Curve Is Downward Sloping Because