On a demand curve

Question

On a demand curve

Quizplus · Accepted Answer

The demand curve shows the relationship between the price of a good and the quantity of that good that consumers are willing and able to buy at that price. Price is plotted on the vertical axis because it is the independent variable - it is determined by the market forces of supply and demand. Quantity demanded is plotted on the horizontal axis because it is the dependent variable - it depends on the price and other factors that affect consumer demand (determinants of demand). Therefore, the correct answer is D - price is on the vertical axis and quantity demanded is on the horizontal axis.

On a Demand Curve