The Demand Curve Is Downward Sloping Because

question 141

Multiple Choice

The demand curve is downward sloping because

• A) the price must rise to induce firms to increase quantity supplied.
• B) a reduction in the price of a good causes individuals to increase their purchase of that good.
• C) an increase in the price will cause a leftward shift in the demand curve.
• D) all of the above.

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Definitions:

Opportunity Loss Strategy

An approach in decision making that focuses on minimizing the potential loss for not choosing the best alternative.

Scoring Model

A statistical tool or algorithm that assesses and assigns scores to individuals or entities based on various attributes or behavior patterns to predict future outcomes.

Attributes

Characteristics or qualities that define or differentiate objects, individuals, or data points.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used as a tool in investment and financial analysis.