BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Normally the demand curve slopes downwards as it indicates inverse relationship between price and quantity demand. Demand curve projects that when the price rises, the quantity demanded falls, and when the price falls, the demand rises.

Detailed explanation-2: -The law of demand explains the functional relationship between the price of a commodity and its demand. The most important tool that explains this relationship is the demand curve. This curve is always downward sloping due to an inverse relationship between price and demand.

Detailed explanation-3: -There are at least three accepted explanations of why demand curves slope downwards: The law of diminishing marginal utility. The income effect. The substitution effect.

Detailed explanation-4: -When the price of commodity increases, its demand decreases. Similarly, when the price of a commodity decreases its demand increases. The law of demand assumes that the other factors affecting the demand of a commodity remain the same. Thus, the demand curve is downward sloping from left to right.

Detailed explanation-5: -Law of Demand and Demand Curve Slope The result of such an inverse relationship between price and quantity demanded is the negative slope of the demand curve. It can also be said that the slope of the demand curve is downward highlighting the inverse relationship between price and quantity demanded.