Question

What is the slope of the demand curve?

• A. Positive
• B. Negative
• C. Vertical
• D. None of these

Hint:

The demand curve typically has a negative slope, reflecting the inverse relationship between price and quantity demanded.

Answer 1

The Correct Option is B

Step 1: Understanding the demand curve.
The demand curve represents the relationship between the price of a good and the quantity demanded. Typically, as the price increases, the quantity demanded decreases, reflecting an inverse relationship. This inverse relationship leads to a downward-sloping demand curve.

Step 2: Understanding the slope.
The slope of the demand curve is negative, meaning it slopes downward from left to right. This indicates that as the price increases, the quantity demanded decreases, which is the law of demand.

Step 3: Analysis of options.
(A) Positive: A positive slope would suggest that as the price increases, the quantity demanded also increases, which is not the case in the law of demand.
(B) Negative: Correct. The slope of the demand curve is negative, meaning there is an inverse relationship between price and quantity demanded.
(C) Vertical: A vertical slope does not represent the typical behavior of the demand curve, which shows an inverse relationship between price and quantity demanded.
(D) None of these: Incorrect, as the correct answer is option (B).

Step 4: Conclusion.
The slope of the demand curve is negative, as it shows an inverse relationship between price and quantity demanded. Therefore, the correct answer is (B) Negative.