Question

At lower prices more of the commodity will be purchased because of which of the following reasons?

• A. More consumers buy the commodity at lower prices
• B. Consumers substitute this commodity for others in consumption
• C. Both (A) and (B)
• D. None of the above

Answer 1

The correct option is C Both (A) and (B)

Demand curve slope downwards as because the individual buys more of a commodity at lower price. Hence, because of the inverse relationship between price and quantity demanded, the demand curve slope downward.At lower prices more of the commodity will be purchased because of the following reasons:a) More consumers buy the commodity at lower prices

b) Consumers substitute this commodity for others in consumption