Question

Which of the following is the reason behind the downward slope of demand option?

Options

• Purchasing power falls

• I am all in the price of a commodity

• New consumers creating demand

• Demand less unit of commodity

Answer 1

I am all in the price of a commodity

Explanation:

While the price of a commodity lowers, new buyers enter the market and begin purchasing it. This is because they couldn't afford it when the price was high but can now afford it when the price reduces. As demand rises, the demand curve begins to slant downward.