A market demand curve shows
A) what price will prevail in the marketplace.
B) how much of a commodity will be purchased in a given period of time at various prices.
C) the rate at which consumption of a commodity will increase as income goes up.
D) the minimum price consumers will have to pay to get a certain quantity.
E) that as price goes up, consumers will spend more money on a commodity.

Question

Quizplus · Accepted Answer

A market demand curve shows how much of a commodity will be purchased in a given period of time at various prices. It represents the collective behavior of consumers in the market. It does not necessarily determine the prevailing price in the marketplace, but it does give an indication of the relationship between price and quantity demanded. It also does not necessarily indicate how consumption will change with the increase in income or how much money consumers will spend on the commodity.

A Market Demand Curve Shows