JAMB Economics 1982 Question 18

Question 18

Theory of Demand

The sloping downward of the demand curve implies that

  1. A.an increase in price leads to an increase in quantity demanded
  2. B.an increase in price leaves the quantity demanded unchanged
  3. C.a decrease in price leads to a decrease in quantity demanded
  4. D.a decrease in price leads to an increase in quantity demanded
  5. E.suppliers respond by offering less commodities for sale.
Show the answer and explanation

Answer: D (a decrease in price leads to an increase in quantity demanded)

Explanation

A downward-sloping demand curve shows the law of demand: when price falls, more is bought.