Inverse relationship between the price of a commodity and the quantity demand (negative slope of the demand curve) can be explained in terms of ______.

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Inverse relationship between the price of a commodity and the quantity demand (negative slope of the demand curve) can be explained in terms of the sum total of income effect and substitution effect. Explanation: The inverse relationship between the price of a commodity and its quantity demanded (i.e., the negative slope of the demand curve) is explained by two key effects: 1. Income Effect: When the price of a good falls, the consumer's real income increases, allowing them to buy more. 2. Substitution Effect: When the price of a good falls, it becomes relatively cheaper than its substitutes, so consumers tend to buy more of it.

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