Question

Demand curve for a commodity will be negatively sloped but steeper when the demand rises by 15% due to a fall in its price from ₹ 40 to ______.

पर्याय

• ₹ 38

• ₹ 36

• ₹ 34

• ₹ 32

Answer 1

Demand curve for a commodity will be negatively sloped but steeper when the demand rises by 15% due to a fall in its price from ₹ 40 to ₹ 34.

Explanation:

A fall from ₹40 to ₹34 is a 15% price decline [(40−34)/40 = 0.15], which causes the 15% rise in demand, showing the inverse (negatively sloped) relationship between price and quantity demanded. The law of demand explains this inverse movement, and the equal percent changes imply unitary price elasticity (if by “steeper” you meant more inelastic, the price would have to fall by more than 15%).