Which of the following statements is correct?
A) The demand curve typically slopes upward;the supply curve typically slopes downward.
B) The demand curve typically slopes downward;the supply curve typically slopes upward.
C) Both the demand and supply curves typically slope downward.
D) Both the demand and supply curve typically slope upward.
E) The demand curve is typically vertical;the supply curve is typically horizontal.

Question

Quizplus · Accepted Answer

According to the law of demand, as price increases, quantity demanded decreases, resulting in a downward sloping demand curve. On the other hand, according to the law of supply, as price increases, quantity supplied increases, resulting in an upward sloping supply curve. Therefore, option B is the correct statement.

Which of the Following Statements Is Correct