Why Is the Aggregate Demand Curve Downward Sloping

question 257

Multiple Choice

Why is the aggregate demand curve downward sloping?

• A) because the more people buy, the fewer additional purchases they need
• B) because people buy something else when the price goes up
• C) because people feel poorer and buy less when prices go up
• D) because the more people wish to consume, the lower the price is

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Definitions:

Extrinsic Motivation

Encouragement stemming from external factors including wealth, recognition, scores, and compliments.

Intrinsic Motivation

The drive to perform an activity for its inherent satisfaction or pleasure, rather than for some separable consequence.

Organismic Needs

Fundamental human needs identified in various psychological theories that are innate and drive behavior, such as physiological, safety, love, and esteem needs.

Intrinsic Motivation

The drive to engage in an activity for its own sake, rather than for the sake of obtaining a reward or avoiding punishment.