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vagabundo [1.1K]
4 years ago
7

What explains the shape of a demand curve?

Business
1 answer:
lidiya [134]4 years ago
3 0
Demand Curve generally have a negative gradient indicating the inverse relationship between quantity demanded and price. There are at least three accepted explanations of why demand curves slope downwards: The law of diminishing marginal utility. The income effect.
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