Question
The demand curve for a normal good is downward sloping because Multiple select question. 1. as prices rise, the purchasing power of each dollar earned
The demand curve for a normal good is downward sloping because
Multiple select question.
1. as prices rise, the purchasing power of each dollar earned falls, and consumers are willing and able to buy less of a good.
2. when consumers purchase substitutes, the quantity demanded of the good rises.
3. when consumers purchase substitutes, the quantity demanded of the good falls.
4. the benefit of consuming more of a good falls with each additional unit, so the price consumers are willing and able to pay also falls with increased consumption.
5. as prices rise, the purchasing power of each dollar earned falls, and consumers are willing and able to buy more of a good.
6. the benefit of consuming more of a good rises with each additional unit, so the price consumers are willing and able to pay also falls with increased consumption.
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