Question : Statement 1: A consumer's demand curve for normal goods slopes downward.
Statement 2: As the price of a normal good decrease, the consumer's quantity demanded of the good increases.
Option 1: Statement 1 is true, and statement 2 is false.
Option 2: Statement 1 is false, and statement 2 is true.
Option 3: Both statement 1 and statement 2 are true.
Option 4: Both statement 1 and statement 2 are false.
Correct Answer: Both statement 1 and statement 2 are true.
Solution : For a normal good, the demand curve slopes downward, indicating that as the price of the good decreases, the quantity demanded by consumers increases. This is in line with the law of demand. Therefore, statement 1 is true.
Statement 2 is also true as it aligns with the behavior of consumers for normal goods. When the price of a normal good decreases, consumers tend to buy more of it, resulting in an increase in the quantity demanded.
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