Normally a demand curve will have the shape:_________?
Correct answer: C. Downward Sloping
- A. Horizontal
- B. Vertical
- C. Downward Sloping
- D. Upward Sloping
Explanation
A normal demand curve slopes downward because consumers generally buy more when price falls and less when price rises, holding other factors constant. Exceptional cases such as Giffen goods do not describe normal demand.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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