Answer to Question #222428 in Microeconomics for Laetitia

Question

“The demand curve is always downward sloping”. Discuss how far you do agree with

this statement.

Answer 1

I completely agree that the demand curve is always downward sloping.

When dealing with demand, the marginal utility of a commodity falls when the quantity of goods increases. Consequently, when the quantity is more, the prices will decrease and demand will rise. Thus, consumers will demand more goods when prices are less. This is why the demand curve slopes downwards.