What does a downward sloping demand curve indicate?

A downward sloping demand curve indicates that as the price of a good decreases, the quantity demanded for that good increases. This relationship reflects the law of demand, which states that, all else being equal, consumers tend to purchase more of a good as its price falls and less as its price rises. By illustrating this negative relationship between price and quantity demanded, the downward sloping curve captures the behavior of consumers in a market.

The other options do not accurately convey the implication of a downward sloping demand curve. The statement about the price remaining constant contradicts the essence of the demand curve, which is derived from varying price levels and their corresponding effects on demand. Similarly, the assertion that higher prices reduce demand is true, but it doesn't encompass the complete picture of the demand curve's slope. Lastly, the claim that demand increases irrespective of price changes disregards the fundamental relationship that the demand curve illustrates, which is heavily contingent on price fluctuations.