A demand curve is derived from
A) the production possibilities curve.
B) consumer's income.
C) a demand schedule.
D) an equilibrium.

Question

Quizplus · Accepted Answer

A demand curve is derived from a demand schedule which shows the quantity of a good or service that consumers are willing and able to purchase at different prices. The demand curve is then plotted based on this data, showing the relationship between quantity demanded and price. The production possibilities curve is used to illustrate the production choices available to an economy, while consumer income is a factor that can affect demand but is not used to directly derive a demand curve. Equilibrium is a point where supply and demand meet and is also not used to derive a demand curve.

A Demand Curve Is Derived from