Demand Curve (Define, Why Is It Downward Sloping)

Demand is based on the our ablility to purchase a good or service. The lower the price the more people are willing and able to buy. The less amount an item is the more income a person has. As the price increased the amount we will buy is less, As price decreases the amount we will buy is more. One reason the demand curve is downward slopping is due to the subsitiution effect consumers want more of a cheaper product if we veiw products as subsittute we will buy the cheaper ones. Another reason is the income effect when prices are lower we have more money left over to buy other goods and services. Sayre Morris, Why is demand downward slopping, March 27 2012.