The relationship between a firm's price and sales quantity is described by the ______ for its product.
A) demand curve
B) supply curve
C) marginal cost curve
D) average cost curve

Question

Quizplus · Accepted Answer

The demand curve represents the relationship between a firm's price and the corresponding quantity of product that consumers are willing and able to buy. As the price of a product increases, the quantity demanded typically decreases, and vice versa. Therefore, the demand curve is a crucial tool for firms in determining their optimal pricing strategy based on market demand.

The Relationship Between a Firm's Price and Sales Quantity Is