Every point on a demand curve is also a point on a(n)
A) income expansion path
B) indifference map
C) price-consumption path

Question

Quizplus · Accepted Answer

Every point on a demand curve represents a combination of price and quantity demanded for a good, assuming all other factors remain constant. When the price of the good changes, the consumer adjusts their consumption to maximize utility, leading to a new point on the demand curve. This adjustment process, reflecting changes in consumption due to changes in the price of the good while holding other prices and income constant, traces out the price-consumption path. Thus, every point on a demand curve is also a point on a price-consumption path, as it shows how the consumer's choice of quantity demanded changes in response to changes in the price of that good.

Every Point on a Demand Curve Is Also a Point