State with reasons whether you agree or disagree with the following st

1.	State with reasons whether you agree or disagree with the following statements:Demand curve slopes downward from left to right.
Answer» Yes, I agree with this statement. Reasons justifying downwards sloping demand curve are as follows : The law of Diminishing Marginal Utility : Marginal utility goes on diminishing when there is increase in the stock of commodity and consumer tends to buy more when price falls and vice-versa. Income Effects : Whenever there is a fall in price of a commodity, purchasing power of a consumer gets increased, which enables him to buy more of that commodity. Substitution Effect : When price of commodity rises consumer tends to buy more of cheaper substitute goods and less of the commodity whose price has increased. Multi-purpose Uses : When a commodity can be used for satisfying multiple needs, its demand will rise with a fall in its price and vice-versa. New Consumers : When there is fall in price of a commodity, a new consumer class buy the commodity as they can afford it. Thus total demand for commodity increases with fall in price.

State with reasons whether you agree or disagree with the following statements:Demand curve slopes downward from left to right.

Answer»

Yes, I agree with this statement.

Reasons justifying downwards sloping demand curve are as follows :

The law of Diminishing Marginal Utility : Marginal utility goes on diminishing when there is increase in the stock of commodity and consumer tends to buy more when price falls and vice-versa.
Income Effects : Whenever there is a fall in price of a commodity, purchasing power of a consumer gets increased, which enables him to buy more of that commodity.
Substitution Effect : When price of commodity rises consumer tends to buy more of cheaper substitute goods and less of the commodity whose price has increased.
Multi-purpose Uses : When a commodity can be used for satisfying multiple needs, its demand will rise with a fall in its price and vice-versa.
New Consumers : When there is fall in price of a commodity, a new consumer class buy the commodity as they can afford it. Thus total demand for commodity increases with fall in price.