If consumer income, preferences, and the prices of all other goods remain constant while the price of X varies, the amount purchased of X is defined by the:
A) demand curve.
B) price-consumption curve.
C) income-consumption curve.
D) price line.

Question

Quizplus · Accepted Answer

The relationship between the price of a good and the quantity demanded is represented by the demand curve, assuming that consumer income and preferences, as well as the prices of all other goods, remain constant. The demand curve is downward sloping, indicating that as the price of a good increases, the quantity demanded decreases, and vice versa. Therefore, the amount purchased of X can be defined by the demand curve, making option A the best choice. The other options, including the price-consumption curve, income-consumption curve, and price line, do not represent the relationship between the price of the good and the quantity demanded.

If Consumer Income, Preferences, and the Prices of All Other