The demand curve for a typical good has an):
A) negative slope because some consumers switch to other goods as the price rises.
B) negative slope because consumer incomes fall as the price of the good rises.
C) negative slope because the good has less "snob appeal" as its price falls.
D) inverse slope because as the price goes up, the good has more profitability.

Question

Quizplus · Accepted Answer

The demand curve for most goods slopes downward from left to right, indicating that as the price of a good increases, the quantity demanded decreases. This happens because consumers start looking for cheaper alternatives or simply buy less of the good as it becomes more expensive, reflecting the law of demand. Choices B, C, and D do not accurately describe the typical reasons behind the shape of the demand curve.

The Demand Curve for a Typical Good Has An)