--%>

Explain the reasons for demand curve slopes downward

Explain the reasons for demand curve slopes downward.

E

Expert

Verified

Demand curve slopes downward it starts from left to right that is called Negative Slope. There are several causes for downward sloping of demand curve as follows:

• Law of Diminishing Marginal utility and Principle of Equal Marginal Utility
• Income and Substitution effect.
• Various uses of a commodity and Psychology of people.
• Affinity of human beings to satisfy/unsatisfied needs.

   Related Questions in Managerial Economics

  • Q : Illustration of Screening Nick responds

    Nick responds “help wanted” that ads by making phone calls and scheduling interviews. If a prospective employer asks for a resume and queries Nick regarding his references and skills, in that case the firms are practicing an illustration of: (i) signaling.

  • Q : Define the areas of Scope of Managerial

    Define the areas of Scope of Managerial /Business Economics?

  • Q : Illustrates the Modern Definition

    Illustrates the Modern Definition?

  • Q : Boom - Phases of business cycle Explain

    Explain about the term Boom in phases of business cycle.

  • Q : Surplus payment from society to

    If a resource is in perfectly inelastic supply (like land), the resource price: (w) has no allocative function. (x) would rise only when resource demand falls. (y) is a surplus payment from society as an entire to resource owners. (z)

  • Q : Describe why firms may shut down

    If a perfectly competitive firm determines that its market price is below its minimum average variable cost, this will sell: w) the output where marginal revenue equivalents marginal cost. x) any positive output the entrepreneur decid

  • Q : Explain the modern definition of

    Explain the modern definition of economics?

  • Q : What did professor Marshall illustrates

    What did professor Marshall illustrates about Law of Demand? Answer: According to Marshall “the amount demanded raises along with reduces in price and diminish

  • Q : Labor Supplies in Competitive Markets

    The individual firm in a purely competitive labor market: (1) faces a perfectly elastic supply of labor at the equilibrium wage. (2) faces a perfectly inelastic supply of labor at the equilibrium wage. (3) has a perfectly elastic demand for labor at t

  • Q : Demand for labor in purely competitive

    When the hourly wage rate for workers this purely competitive firm hires is approximately of $13, this will operate at: (1) point a. (2) point b. (3) point c. (4) point d. (5) point e.

    Discover Q & A

    Leading Solution Library
    Avail More Than 1452248 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1959572
    Asked

    3,689

    Active Tutors

    1452248

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.