Question

In the following Question, read the statements and choose the correct alternative among those given below:

Statement 1: Slope of demand curve is based on the percentage change in price and quantity.

Statement 2: Due to inverse relationship between price and demand, the demand curve slopes downwards.

विकल्प

• Both the Statements are true.

• Both the Statements are false.

• Statement 1 is true and Statement 2 is false.

• Statement 2 is true and Statement 1 is false.

Answer 1

Statement 2 is true and Statement 1 is false.

Explanation:

 the slope is based on absolute changes in price and quantity, not percentage changes. Statement 2 is true: the inverse relationship between price and quantity demanded makes the demand curve slope downward.