The demand for commodity 'B' falls by 30% due to rise in the price by Rs.5 from the original price of Rs.15. What is the shape of the demand curve?
Dear Student
Original price = Rs. 15
Let at this commodity demanded was 100 units
New price = Rs. 20
New demand= 70% of 100 units= 70 units
If price is shown on y axis and quantity demanded on x axis then the shape of demand curve will be downward sloping from left to right as shown in following figure
Regards
Original price = Rs. 15
Let at this commodity demanded was 100 units
New price = Rs. 20
New demand= 70% of 100 units= 70 units
If price is shown on y axis and quantity demanded on x axis then the shape of demand curve will be downward sloping from left to right as shown in following figure
Regards