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What does the downward slope of the demand curve indicate?

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Question

What does the downward slope of the demand curve indicate?

Options

  • As price increases, quantity demanded increases

  • As price decreases, quantity demanded increases

  • Price and quantity demanded are unrelated

  • As price decreases, quantity demanded decreases

MCQ
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Solution

As price decreases, quantity demanded increases

Explanation:

The demand curve shows the law of demand: when price falls, quantity demanded rises, showing an inverse relationship.

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