Question

In the case of normal goods, demand curve shows

• A. positive slope
• B. negative slope
• C. zero slope
• D. none of these.

Hint:

Remember "Demand Down": The Demand curve for normal goods is always Downward sloping. This visual cue helps to quickly recall the negative relationship between price and quantity demanded.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
The law of demand describes the relationship between the price of a good and the quantity demanded by consumers. For normal goods, this relationship is inverse: as the price of a good increases, the quantity demanded decreases, and vice versa, assuming all other factors remain constant (ceteris paribus).
Step 2: Detailed Explanation:
A demand curve is a graphical representation of this relationship, with price plotted on the vertical (Y) axis and quantity demanded on the horizontal (X) axis.
- An increase in price (a move up the Y-axis) leads to a decrease in quantity demanded (a move to the left on the X-axis).
- A decrease in price (a move down the Y-axis) leads to an increase in quantity demanded (a move to the right on the X-axis).
When you connect these points on a graph, the resulting line slopes downwards from left to right. A downward-sloping line has a negative slope.
Step 3: Final Answer:
Therefore, the demand curve for normal goods shows a negative slope, reflecting the inverse relationship between price and quantity demanded. The correct option is (B).