The following price-quantity coordinates for gold used by U.S.dentists were observed: P = $875/ounce, Q = 342,000; P = $200/ounce, Q = 706,000.These points most likely lie along the
A)supply curve for gold for dental use.
B)demand curve for dental use.
C)equilibrium curve for dental use.
D)production possibilities curve for dental use.

Question

Quizplus · Accepted Answer

The price-quantity coordinates describe the behavior of buyers (U.S. dentists) in response to changes in price. As the price of gold decreases from $875/ounce to $200/ounce, the quantity demanded increases from 342,000 to 706,000. This is consistent with the law of demand, which states that as price decreases, quantity demanded increases. Therefore, these points most likely lie along the demand curve for gold for dental use.

The Following Price-Quantity Coordinates for Gold Used by U