The smoothest demand curve for good X is produced when there are _____ demanders and when good X can be purchased:
A) many; in small fractions of a full unit.
B) few; only in full units.
C) many; only in full units.
D) few; in small fractions of a full unit.

Question

Quizplus · Accepted Answer

The smoothest demand curve is produced when there are many demanders and when the good can be purchased in small fractions of a full unit. This allows for a more continuous and less step-like demand curve, reflecting a wide range of quantities demanded at different prices.

The Smoothest Demand Curve for Good X Is Produced When