Consider the following statements regarding the factors affecting demand: 1. Demand depends on consumer expectations. 2. Price of substitutes affects demand. 3. Production cost directly determines demand. 4. Population size influences market demand. Which of the statements given above are correct?

Consider the following statements regarding the dynamics of consumer demand: Statement 1: Expansion of demand is characterized by a downward movement along an existing demand curve resulting specifically from a decrease in the price of the commodity. Statement 2: An increase in demand is represented by a rightward shift of the entire demand curve driven by non-price factors such as rising consumer income or changing preferences. Which of the following options is correct?

According to economic theory, demand curves typically have a negative slope primarily because: