Could you please help with these problems involving the market demand curve.
1. The market demand curve for a product always slopes downward to the right. Yes or no? Explain.
2. Is there a difference between a movement along a demand curve and the shift of the demand curve? Yes or no? Explain.
3. Why are managers interested in the concept of consumer surplus? Discuss.© BrainMass Inc. brainmass.com October 10, 2019, 7:26 am ad1c9bdddf
1. Yes, the market demand curve always slopes downward to the right, due to the law of demand. This is because as the price increases, the quantity sold decreases. Similarly, as the price decreases, the quantity sold increases. Since a high value of one variable results in a low value of the other variable, the curve slopes downward from left to right.
2. Yes, there is a difference between a movement along a ...
This 299 word solution is a discussion of the market demand curve, shifting versus movement, and consumer surplus. It explains the correct directional slope of demand curves and why that direction is always correct. It explains the difference between movement along a demand curve and the shift of a demand curve.