A demand curve slopes downwards from left to right, but this may not always be...
A demand curve slopes downwards from left to right, but this may not always be so. Explain the statement.
Explanation
The law of demand states that " The higher the price, the lower the quantity demanded". The demand curve slopes downwards from left to right. However, this may not be so in all situations due to the following:
(a) Goods of ostentation: Some consumers take pride in buying goods whose prices are high. The higher the price, the higher the quantity demanded. Example of ostentatious goods are expensive jewelries, gold watches.
(b) Articles of necessities: Some items are considered essential to the extent that people cannot do without them. Examples are garri, salt etc. The low income earners prefer sacrificing other items at the expense of these ones. Therefore, the higher the price of these items, the higher will be the demand for them.