Why does demand curve slopes downward??? 5 points answer required...
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Answered by
32
Heya......
Demand curve is that curve which shows inverse relationship between price and quantity demanded for a good...
It slopes downward because.....
* Law of Diminishing Marginal Utility..
If we consume more and more goods then it's satisfaction driven to be decline and then we want to purchase that more good for low cost thus,, low price leads to high demand....
* Income effect...
If the prices of a good is reduced then the purchasing power will increase becz now at existing income we can buy more so again inverse relationship....
* Substitution effect....
If we have the substitution of a good then we buy the low price good for satisfaction and it lead due to less price...
* Size of the consumer....
If prices of a commodity falls then more consumers will shift on that it leads to more demand by fall in price.....
* Different use.....
A good has different uses if it prices falls it gets high demand so price fall increase its demand and use....
"" All above factor show the why demand curve slopes downward... ""
Demand curve is that curve which shows inverse relationship between price and quantity demanded for a good...
It slopes downward because.....
* Law of Diminishing Marginal Utility..
If we consume more and more goods then it's satisfaction driven to be decline and then we want to purchase that more good for low cost thus,, low price leads to high demand....
* Income effect...
If the prices of a good is reduced then the purchasing power will increase becz now at existing income we can buy more so again inverse relationship....
* Substitution effect....
If we have the substitution of a good then we buy the low price good for satisfaction and it lead due to less price...
* Size of the consumer....
If prices of a commodity falls then more consumers will shift on that it leads to more demand by fall in price.....
* Different use.....
A good has different uses if it prices falls it gets high demand so price fall increase its demand and use....
"" All above factor show the why demand curve slopes downward... ""
vyomgupta:
hii
Answered by
5
Hey mate.......
here is ur answer......,
In all the cases mentioned down the low prize leads to high demans...
1) Income effect
2) Substitution effect
3) Consumer size
4) Law of diminishing marginal unity
5) Differs in uses....
Hope it helps♥♥♥
here is ur answer......,
In all the cases mentioned down the low prize leads to high demans...
1) Income effect
2) Substitution effect
3) Consumer size
4) Law of diminishing marginal unity
5) Differs in uses....
Hope it helps♥♥♥
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