Demand curves are generated by the
A) utility-maximizing behavior of agents
B) income-maximizing behavior of agents
C) nonconvexity behavior of agents

Question

Quizplus · Accepted Answer

Demand curves are a representation of the quantity of a good or service that consumers are willing and able to buy at various prices. This behavior is typically driven by consumers' desires to maximize their utility or satisfaction from consuming the good or service. Therefore, the correct choice is (A) utility-maximizing behavior of agents. (B) income-maximizing behavior may play a role in demand for some goods, but it is not the primary driver of demand curves. (C) nonconvexity behavior is not directly related to the generation of demand curves.

Demand Curves Are Generated by the