Question

Why does demand curve of a normal good slope downward from left to right?

Answer 1

When price fall the quantity demanded of a commodity rises and vice versa, other things remaining the same. It is due to this law of demand that demand curve slopes downward to the right.

Now, the important question is why the demand curve slopes downward, or in other words why the law of demand describing inverse price-demand relationship is valid. We can explain this with marginal utility analysis and also with the indifference curve analysis.

Answer 2

Explanation:

reasons are downward sloping demand curve

1)law of diminishing marginal utility

2)substitution effect

3)income effect

4)new buyers

5)old buyers