A demand curve represents a(n)
A) direct relationship between price and quantity demanded.
B) direct relationship between price and demand.
C) indirect or inverse relationship between price and quantity demanded.
D) indirect relationship between price and supply.

Question

Quizplus · Accepted Answer

A demand curve shows the relationship between the price of a good or service and the quantity that consumers are willing and able to buy at that price. This relationship is generally inverse, which means that as the price of a good or service goes up, the quantity demanded will go down, and vice versa. Therefore, the correct answer is C, which states that a demand curve represents an indirect or inverse relationship between price and quantity demanded. Choices A, B, and D are incorrect because they do not accurately describe the relationship shown on a demand curve.

A Demand Curve Represents A(n)