A Downward-Sloping Demand Curve Shows

question 45

Multiple Choice

A downward-sloping demand curve shows:

• A)​the direct relationship between price and quantity supplied; as price increases, the quantity supplied increases.
• B)​the inverse relationship between price and quantity supplied; as price increases, the quantity supplied decreases.
• C)​the direct relationship between price and quantity demanded; as price increases, the quantity demanded increases.
• D)​the inverse relationship between price and quantity demanded; as price increases, the quantity demanded decreases.

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Definitions:

Marginal Rate of Substitution

The rate at which a consumer is willing to give up one good in exchange for another good while maintaining the same level of utility.

Wheat

A cereal grain that is a worldwide staple food, known for its application in various foods like bread, pasta, and more.

Milk

A nutritious white liquid produced by the mammary glands of mammals, widely consumed as a beverage or used as an ingredient in cooking.

Utility Function

A representation in economics that captures a consumer's preference by assigning a utility value to different bundles of goods.