ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Except for certain less common circumstances, the demand curve slopes down, from left to right, due to the law of demand : that for the majority of goods, the quantity demanded drops as the price rises. Changes in factors besides price and quantity can shift a demand curve to the right or left.

Detailed explanation-2: -With a couple of exclusions, the demand curve always slopes downward from left to right direction because price and quantity demanded of the product are conversely related to each other i.e. with decline in the price of the product, the quantity demanded for such products will increase.

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: -Solution: An individual demand curve slopes downward to the right because of the Working of the law of diminishing marginal utility, Substitution effect of decrease in price and Income effect of fall in price.

Detailed explanation-5: -The slope of the demand curve (downward to the right) indicates that a greater quantity will be demanded when the price is lower. On the other hand, the slope of the supply curve (upward to the right) tells us that as the price goes up, producers are willing to produce more goods.