A demand curve is built on the assumption that
A)income is derived from demand.
B)price remains the same, and fixed costs change.
C)everything but price and demand remains the same.
D)fixed costs change with quantity demanded.
E)the firm does not advertise.

Question

Quizplus · Accepted Answer

The demand curve is built on the assumption that everything else remains the same except for price and demand. This means that factors such as income, fixed costs, and advertising do not have an impact on the demand curve. The demand curve simply shows how much of a product consumers are willing and able to buy at different price points, assuming all other factors remain constant.

A Demand Curve Is Built on the Assumption That