Question 9
Theory of DemandThe sloping downward of the demand curve implies that
- A.an increase in price leads to an increase in quantity demanded
- B.an increase in price leaves the quantity demanded unchanged
- C.a decrease in price leads to a decrease in quantity demanded
- D.a decrease in price leads to an increase in quantity demanded
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 inverse relationship between price and quantity demanded: when price falls, people buy more.