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:

Merchant

An individual or business entity engaged in the trade of goods, services, or both, to consumers.

Bilateral Contract

A mutual agreement between two parties where each promises to perform an act in exchange for the other party's act.

Valid Contract

A legally binding agreement between parties that is enforceable by law, meeting all essential elements like offer, acceptance, consideration, and mutual intent.

Rejection

In contract law, an express or implied manifestation of an offeree’s unwillingness to contract on the terms of an offer. In sales law, a buyer’s refusal to accept goods because they are defective or nonconforming.