Question 8
Theory of DemandUse the table below to answer the question.
Price(₦) | Quantity (kg)
1 | 100
2 | 120
3 | 150
4 | 180
5 | 200
The graph of the schedule above will depict
- A.a kinked demand curve
- B.a normal demand curve
- C.an abnormal demand curve
- D.a diminishing marginal utility curve.
Show the answer and explanation
Answer: C (an abnormal demand curve)
Explanation
As the price rises from ₦1 to ₦5, the quantity rises from 100 kg to 200 kg. A demand curve that slopes upwards like this is abnormal.