If Price Is on the Vertical Axis and Quantity Demanded

question 148

Multiple Choice

If price is on the vertical axis and quantity demanded is on the horizontal axis,why is a demand curve downward sloping (left to right) ?

• A) Because a demand curve is the graphical representation of the law of demand,which specifies an inverse relationship between price and supply,ceteris paribus.
• B) Because a demand curve is the graphical representation of the law of demand,which specifies a direct relationship between price and quantity supplied,ceteris paribus.
• C) Because a demand curve is the graphical representation of the law of demand,which specifies an inverse relationship between price and demand,ceteris paribus.
• D) Because a demand curve is the graphical representation of the law of demand,which specifies a direct relationship between price and demand,ceteris paribus.
• E) Because a demand curve is the graphical representation of the law of demand,which specifies an inverse relationship between price and quantity demanded,ceteris paribus.

---

Definitions:

Great Depression

A global economic downturn of severe magnitude, primarily occurring in the 1930s, starting in the United States.

Roosevelt Administration

The period of U.S. history during Franklin D. Roosevelt's presidency, known for significant economic reforms known as the New Deal.

Federal Government Agencies

Organizations established by the federal government to implement certain policies, regulate activities, and provide specific services.

Mortgages

Loans secured by real property used by individuals and businesses to purchase homes or other real estate without paying the entire purchase price upfront.