Practicing Success
What is the General shape of Demand curve ? |
Upward sloping straight line A line parallel to x-axis Generally downward sloping to all normal goods A line parallel to y-axis |
Generally downward sloping to all normal goods |
The correct answer is option (3) : Generally downward sloping to all normal goods The law of demand states that there's an inverse relationship between the price of a good and the quantity demanded, all other factors remaining constant. This means as the price of a good increases, the quantity demanded decreases, and vice versa.This relationship is typically depicted by a downward sloping curve on a graph where the price is on the y-axis and the quantity demanded is on the x-axis. |