contestada

What happens to the individual demand curve as the price of an item increases?

a.
An individual demand for an item will increase causing an upward slope.
b.
An individual demand for an item will decrease causing a downward slope.
c.
An individual demand will increase, causing the price to increase further.
d.
An individual demand curve will remain unchanged and price is never a factor

Respuesta :

Answer:

b. An individual demand for an item will decrease causing a downward slope.

Explanation:

The law of demand states that when other factors are held constant, the price and demand have inverse relationship, which means that as one increases, the other one decreases. So in the case of the of your problem, as the price of an item increases, the demand will decrease (the opposite would be true as well).

So when you put it in a graph, the demand curve would be sloping downwards.