State whether the following statement are TRUE and FALSE 1. Demand curve slopes upward from left to right.

State whether the following statement are TRUE and FALSE
1. Demand curve slopes upward from left to right.

ANSWER:

FALSE
The demand curve is the graphical representation of the relationship between the demand for a good and its price for a given income, price of related goods, tastes and preferences. This curve slopes downwards from left to right because of the negative relationship between the price of the commodity and its demand. In the diagram below, DD is the demand curve.

No comments: