A downward sloping demand curve means (LOl) a) you have to lower your price to sell more b) demand falls as output rises c) demand rises as output rises d) total revenue declines as price is lowered

The demand curve is a graphical representation of the relationship between the quantity of a good that consumers are willing to buy and its price. A downward sloping demand curve indicates that as the price of a good decreases, the quantity demanded by consumers increases.

a) You have to lower your price to sell more: This statement is true in relation to a downward sloping demand curve. As the price decreases, the quantity demanded increases, so to sell more units of the product, you have to lower the price. b) Demand falls as output rises: This statement is incorrect. As output (quantity) rises, demand does not necessarily fall. Instead, when the price falls, the quantity demanded increases, which can be seen on the downward sloping demand curve. c) Demand rises as output rises: This statement is also incorrect because it does not consider the relationship between price and quantity demanded. In a downward sloping demand curve, the demand for a good increases as its price falls, which is different from rising output. d) Total revenue declines as the price is lowered: This statement can be true or false. The relationship between price, quantity, and total revenue depends on various factors, such as price elasticity of demand. If the demand is elastic, a decrease in price can lead to a greater percentage increase in quantity demanded, and thus, the total revenue can increase. On the other hand, if the demand is inelastic, a decrease in price can result in a lesser percentage increase in quantity demanded, causing total revenue to decrease. So, based on our evaluation of each option:

The correct answer is option a) you have to lower your price to sell more, as it accurately reflects the relationship between price and quantity demanded in a downward sloping demand curve.