law of demand
Please help with the following problem. Provide at least 300 words in the solution.
Explain the law of demand. Why does a demand curve slope downwards? Distinguish between a change in demand and a change in quantity demanded.
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Problem: Explain the law of demand. Why does a demand curve slope downwards? Distinguish between a change in demand and a change in quantity demanded.
Solution:
The law of demand states that if all other things remain constant, then as the price of a good or service falls, the quantity demanded by consumers will rise. That is, there is an inverse relationship between the price and demand, ceteris paribus. This inverse relationship can be represented on a graph, with price on the vertical axis and quantity on the horizontal axis, ...
Solution Summary
The following posting helps with a problem involving utility and demand. This solution helps characterize the law of demand. It explains why a demand curve slopes downwards and helps distinguish between a change in demand and a change in quantity demanded. The explanation is given in 360 words.