A typical demand curve shows that: a

Economics Dec 08, 2020

A typical demand curve shows that:

a. people tend to buy more of a good than they really want.

b. people tend to buy more of a good when its price increases.

c. people tend to buy less of a good when its price increases.

d. as people earn more income, they buy more of a good. as supply increases, the amount purchased decreases.

Expert Solution

The correct option is c. people tend to buy less of a good when its price increases.

The very rule of the demand curve is the price and quantity demanded have an inverse relationship. People will buy more a product if the price goes down and people will buy less if the price goes up.

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