Explanation Demand is not the mere desire to purchase a commodity by a buyer. It is the willingness as well as the ability to pay for the commodity in the market by a buyer. Thus, the demand refers to the willingness and ability to purchase a good or service that satisfies the need of the consumer and provides utility to the consumer. The demand curve is related to the price of the commodity. Thus, the law of demand will affect the demand curve. The law of demand states that other things remain the same, and whenever the price of the commodity increases, the demand for the commodity would decrease and vice versa. This is because when the other things remain the same, the income of the consumer also remains unchanged. As the price only increases, it increases a portion of fixed income that should be paid for getting the commodity from the market...

Cause for the downward slope of the demand curve.

EBK PRINCIPLES OF MICROECONOMICS (SECON

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ISBN: 9780393616149

Author: Mateer

Publisher: W.W.NORTON+CO. (CC)

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Question

Chapter 3, Problem 2QR

To determine

Cause for the downward slope of the demand curve.

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Similar questions

As the price of good X rises from 10 to 12, the quantity demanded of good Y rises from 100 units to 114 units. Are X and Y substitutes or complements? What is the cross elasticity of demand?

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