The construction of demand and supply curves assumes that the primary variable influencing decisions to produce and purchase goods is

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The primary variable influencing decisions to produce and purchase goods is price. Demand represents the quantity of goods that consumers are willing to buy at a particular price, while supply represents the quantity of goods that producers are willing to sell at a particular price. Therefore, the construction of demand and supply curves is based on the relationship between price and quantity demanded or supplied. Expectations, preferences, and incomes are important determinants of demand and supply, but they are not the primary variable used to construct the curves.

The Construction of Demand and Supply Curves Assumes That the Primary