When plotting the relationship between quantity demanded and price, the graph’s shape is best described as:

• A. upward sloping
• B. vertical
• C. downward sloping
• D. horizontal

Answer: (C)

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 decreases, the quantity demanded increases, and vice versa.
2. Recognize that this inverse relationship between price and quantity demanded means that when you plot price on the vertical axis and quantity demanded on the horizontal axis, the demand curve slopes downward from left to right.
3. Eliminate other options by considering their implications: an upward sloping curve would imply that higher prices lead to higher quantity demanded, which contradicts the law of demand; a vertical curve implies quantity demanded does not change with price; a horizontal curve implies quantity demanded changes infinitely with price.
4. Conclude that the correct graphical representation of the demand curve is downward sloping, reflecting the negative relationship between price and quantity demanded.
5. Remember that this downward slope is fundamental in microeconomics and helps explain consumer behavior in response to price changes.