What does the demand curve typically indicate about quantity demanded as price decreases?

Study for the Praxis II Business Education – Content Knowledge (5101) Test. Enhance your business acumen with flashcards and multiple choice questions. Each question includes detailed hints and explanations to ensure thorough understanding. Prepare effectively for your exam!

The demand curve typically indicates that as the price of a good or service decreases, the quantity demanded increases. This phenomenon is a fundamental principle in economics known as the law of demand. When prices fall, consumers are generally more willing and able to purchase more of that good or service, leading to an increase in the quantity demanded. This relationship is visually represented on a graph, where the demand curve slopes downward from left to right, illustrating that lower prices correspond to higher quantities demanded.

This principle is rooted in consumer behavior; as the price decreases, the good becomes more attractive to consumers who may have been unwilling to buy at a higher price. Therefore, the correct answer accurately reflects the typical behavior observed in the demand curve concerning price changes.

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