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:

Setup Cost

The expenses incurred to prepare and equip a process, production line, or machine to manufacture a new product batch or order.

Monthly Holding Cost

The recurring expenses associated with holding or storing inventory over a month, including warehousing and insurance costs.

Annual Production Rate

The total quantity of goods that a facility produces over the course of a year.

Intrinsic Value

The actual, fundamental value of an asset, determined through financial analysis without reference to its market value.