The demand curve for a typical good has a(n):

• A. horizontal shape, indicating that price does not change with quantity demanded
• B. positive slope, indicating that quantity demanded increases as price increases
• C. vertical shape, indicating that quantity demanded does not change with price
• D. negative slope, indicating that quantity demanded decreases as price increases

Answer: (D)

Verified step by step guidance

1. Understand the concept of a demand curve: it shows the relationship between the price of a good and the quantity demanded by consumers.
2. Recall the Law of Demand, which states that, ceteris paribus, as the price of a good increases, the quantity demanded decreases, and vice versa.
3. Recognize that this inverse relationship between price and quantity demanded results in a demand curve with a negative slope.
4. Interpret the shapes mentioned: a horizontal demand curve implies perfectly elastic demand, a vertical demand curve implies perfectly inelastic demand, and a positive slope would contradict the Law of Demand.
5. Conclude that the typical demand curve has a negative slope, reflecting the usual decrease in quantity demanded as price rises.