What does a downward-sloping demand curve illustrate?
A) It illustrates the inverse relationship between price and quantity demanded; as price increases, the quantity demanded decreases.
B) It illustrates the inverse relationship between price and quantity supplied; as price increases, the quantity supplied decreases.
C) It illustrates the direct relationship between price and quantity demanded; as price increases, the quantity demanded increases.
D) It illustrates the direct relationship between price and quantity supplied; as price increases, the quantity supplied increases.

Question

Quizplus · Accepted Answer

A downward-sloping demand curve illustrates the inverse relationship between price and quantity demanded; as price increases, the quantity demanded decreases. This is because as the price of a good or service increases, consumers are likely to look for cheaper alternatives or decrease their overall consumption.

What Does a Downward-Sloping Demand Curve Illustrate