JAMB - Economics (2024 - No. 24)

A downward sloping demand curve means that
price must be lowered to sell more
total revenue declines as price is lowered
demand falls as output increases
demand falls as output falls

Explanation

When the price of a product decreases, consumers are generally willing to buy more of it. As a result, the quantity demanded increases. However, since each unit is sold at a lower price, the decline in price outweighs the increase in quantity, leading to a decrease in total revenue (total revenue = price x quantity). This is why a downward sloping demand curve indicates that the total revenue declines as the price is lowered.

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