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Question
In the following Question, read the statements and choose the correct alternative among those given below:
Statement 1: Market demand curve slope downwards due to inverse relationship between price and quantity demanded.
Statement 2: Slope of demand curve is equal to change in quantity divided by change in price.
Options
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.
MCQ
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Solution
Statement 1 is true and Statement 2 is false.
Explanation:
Statement 1 is true: market demand curves slope downward because price and quantity demanded are inversely related. Statement 2 is false: slope is change in price divided by change in quantity, not the reverse.
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