Which of the following is true of a consumer's demand curve?

Question

Quizplus · Accepted Answer

The distance from the horizontal axis on a consumer's demand curve represents the quantity demanded at each corresponding price. Marginal rate of substitution refers to the rate at which a consumer is willing to trade one good for another, indicating the consumer's preference for the good at different price levels. Therefore, the distance from the horizontal axis on a consumer's demand curve equals the marginal rate of substitution. Option A is incorrect as consumer's income is not mentioned in the definition of a demand curve. Option B is also incorrect as tastes and preferences are assumed to be constant along the demand curve in economics. Option D is incorrect as there is no general rule regarding price elasticity of demand for all goods.

Which of the Following Is True of a Consumer's Demand