Home / Aptitude Tests / Economics / A downward sloping d...

A downward sloping demand curve means that?

...

A downward sloping demand curve means that?

A.

Total revenue declines as price is lowered

B.

Demand falls as output rises

C.

Demand falls as output falls

D.

Price must be lowered to sell more

Correct answer is B

Downward sloping demand curve means a rational consumer will demand more of a commodity when its price falls. Some of the reasons for.the phenomenon would be: Income Effect : When price of a commodity falls, consumer's real income rises that is he can now purchase more of the commodity with the same income.