What does a downward-sloping demand curve mean about how buyers in a market will react to a higher price?

Short Answer

Expert verified

Buyers will demand less.

Step by step solution

01

Step1. Introduction

Demand curve depicts the relationship between the quantity demanded at various level of prices.

02

Step2. Explanation

As the prices increase, the people will demand less. Likewise, at lower price level, quantity demanded will be higher. This implies an inverse relationship between the price and quantity demanded. Hence, a downward sloping demand curve indicate that people will demand less at higher prices.

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