Why do most demand curves have a negative slope?

• A. Because higher prices always lead to higher demand for all goods.
• B. Because as the price of a good increases, the quantity demanded decreases due to the law of demand.
• C. Because the supply curve also has a negative slope.
• D. Because consumers prefer to buy more when prices rise.

Answer: (B)

Verified step by step guidance

1. Understand the law of demand, which states that, ceteris paribus (all else equal), as the price of a good increases, the quantity demanded decreases.
2. Recognize that this inverse relationship between price and quantity demanded is the reason why demand curves typically slope downward from left to right.
3. Note that higher prices make a good less affordable or less attractive to consumers, leading them to buy less of that good.
4. Distinguish demand curves from supply curves, as supply curves usually have a positive slope, reflecting that higher prices incentivize producers to supply more.
5. Conclude that the negative slope of the demand curve reflects consumer behavior responding to price changes, not because higher prices increase demand.