Monday, March 17, 2014

The demand curve for kerosene is upward sloping as the price of kerosene rose the quantity demanded of kerosene increased. What question did we raise?

I am sorry, but your question is a little hard to
understand.


First of all, the demand curve for a good or service is
downward sloping (higher on the left, lower on the right) when the vertical axis shows price and
the horizontal shows quantity. This is because the quantity demanded for any good or service goes
up as the price goes down (all other things being equal).


If the
price of kerosene went up and the quantity demanded went up as well, something must have happened
to move the demand curve. That is the question that arises--what caused the demand curve to
move.


If the price went up and the quantity demanded went up,
something must have increased demand and you would need to ask what it was that caused demand to
increase. This could be something like a rise in the price of goods that compete with kerosene or
an increase in the population of an area that uses kerosene.


So,
there are two points to be made. First, a demand curve does not slope upward. Second, if price
rose and quantity demanded rose, the demand curve must have moved to the right (demand must have
increased). Therefore, the question raised is "why did the demand curve
move?"

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