Why does the demand curve slope downwards?

It is assumed that if the price of a good falls, more people will be able to afford the good and therefore more people will want to buy the good when the price is lower. Therefore, as price falls the quantity demanded increases and therefore the demand curve slopes downwards

TC

Related Economics GCSE answers

All answers ▸

What is the impact of an increase in interest rates?


Explain the possible effect on consumers and producers when a specific tax is imposed on cigarettes.


Factors that affect the demand of a good or service?


What are the characteristics of an oligopoly?