Question 11
Theory of DemandA Nigerian household's demand curve for semovita is downward sloping because
- A.the demand for semovita is high
- B.the local markets are flooded with semovita
- C.it is produced in Nigeria
- D.every household can afford to buy semovita
- E.higher prices attract lower quantities while lower prices attract larger quantities.
Show the answer and explanation
Answer: E (higher prices attract lower quantities while lower prices attract larger quantities.)
Explanation
A demand curve slopes downward because people buy less at higher prices and more at lower prices (the law of demand).