Question

    The demand curve shows

    that: 
    A As the price of a good increases, demand for the good increases Correct Answer Incorrect Answer
    B As the price of a good increases, demand for the good decreases Correct Answer Incorrect Answer
    C The demand curve has a positive slope Correct Answer Incorrect Answer
    D There is a direct relationship between quantity demanded and price Correct Answer Incorrect Answer

    Solution

    The demand curve typically slopes downward, showing an inverse relationship between price and quantity demanded. As the price of a good rises, consumers tend to buy less of it.

    Practice Next