MICROECONOMICS (LL) W/ACCESS
MICROECONOMICS (LL) W/ACCESS
21st Edition
ISBN: 9781260199888
Author: McConnell
Publisher: MCG
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Concept explainers

Question
Chapter 3, Problem 1DQ
To determine

Law of demand and a shape of the demand curve.

Expert Solution & Answer
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Explanation of Solution

The law of demand states that when other things being equal, if the price decreases, it leads to an increase in the quantity demand and vice versa.

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.

Economics Concept Introduction

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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