Concept explainers
Law of demand and a shape of the demand curve.
Explanation of Solution
The law of
The demand curve slopes downward. The reason for the downward slope is due to the law of demand. The law of demand states that there is a negative relationship that exists between the price and the quantity demand. This inverse relationship causes the negative slope.
The market demand is the total addition of all the individual quantities at a particular price. Thus, the market demand curve is the horizontal summation of the individual demand curve.
Concept introduction:
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
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Chapter 3 Solutions
Economics: Principles, Problems, and Policies (20th Global Edition)
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