Question

A demand curve that illustrates the law of demand​ ______. A. shows that the quantity demanded increases as the price rises B. has a positive slope C. is upward sloping D. shows that the quantity demanded increases as the price falls

Answer 1

Answer:

D. shows that the quantity demanded increases as the price falls

Explanation:

A Demand curve states the law of demand which depicts an inverse relation between price of a good and the quantity demanded of that good.

Quantity demanded of a good changes only when price of good changes with other factors affecting demand like income, tastes and preferences etc remaining constant.

Thus, when price falls, quantity demanded of a good rises i.e movement along the demand curve i.e downward movement. i.e D. shows that the quantity demanded increases as the price falls.