In economics, the slope of the demand curve is typically_____.

Correct option is B

In economics, the demand curve typically slopes downward from left to right. This is because of the law of demand, which states that as the price of a good or service decreases, the quantity demanded increases, and vice versa. This negative relationship between price and quantity demanded is represented by a downward sloping demand curve.

Important Key Points:

1. The downward slope reflects the inverse relationship between price and quantity demanded.
2. As price decreases, consumers are willing to buy more of the product.
3. The demand curve may shift due to factors other than price, such as income, tastes, or expectations.
4. In perfect competition, the demand curve is typically linear and downward sloping, but it can vary based on elasticity.
5. The slope of the demand curve can be influenced by factors such as the availability of substitutes and the necessity of the good.

Information Booster:

• Curved moving from left to right (Option a): This may represent elastic demand but is not the typical shape of the demand curve.
• Upward from left to right (Option c): This would indicate an increase in demand with price, which is an exception, such as with Giffen goods or Veblen goods.
• Straight parallel to the X axis (Option d): This represents perfectly inelastic demand, where quantity demanded does not change regardless of price.