Why demand curve has downward slope and supply curve has upward slope?
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About the demand curve-
(From the viewpoint of a consumer)
As prices increases,the consumer is likely to consume less and less of the commodity which makes the demand curve to slope downward.There are exceptions off course like articles of distinction,etc.However,the general rule is that as prices goes down,demand rises.
About the supply curve-
(From the viewpoint of a producer)
As the prices go up,the producer’s profit increases which makes him produce more and more of the commodity,resulting in an upward sloping demand curve.Perishable goods is an example of exception to this.However in general there's a postive relationship between prices and supply.
Hope this helped. :)
(From the viewpoint of a consumer)
As prices increases,the consumer is likely to consume less and less of the commodity which makes the demand curve to slope downward.There are exceptions off course like articles of distinction,etc.However,the general rule is that as prices goes down,demand rises.
About the supply curve-
(From the viewpoint of a producer)
As the prices go up,the producer’s profit increases which makes him produce more and more of the commodity,resulting in an upward sloping demand curve.Perishable goods is an example of exception to this.However in general there's a postive relationship between prices and supply.
Hope this helped. :)
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