What relationship does a demand curve illustrate?

What relationship does a demand curve illustrate?

• A. Relationship between quantity purchased and price
• B. Relationship between price and quantity supplied
• C. Relationship between quantity supplied and time
• D. Relationship between demand and supply

Answer: (A)

The demand curve shows how the amount buyers are willing and able to purchase changes as price changes, with other factors held constant. On the graph, price is on the vertical axis and quantity demanded on the horizontal axis, and the curve typically slopes downward, reflecting the law of demand: lower prices lead to higher quantities demanded, while higher prices lead to lower quantities demanded. This captures the relationship between price and the quantity buyers choose to purchase. The other statements describe different ideas: the price–quantity supplied relationship is shown by the supply curve; the relation between quantity supplied and time isn’t the standard single-curve depiction; and a link between demand and supply refers to how the two curves interact to determine market equilibrium, not the specific demand curve itself.

The demand curve shows how the amount buyers are willing and able to purchase changes as price changes, with other factors held constant. On the graph, price is on the vertical axis and quantity demanded on the horizontal axis, and the curve typically slopes downward, reflecting the law of demand: lower prices lead to higher quantities demanded, while higher prices lead to lower quantities demanded. This captures the relationship between price and the quantity buyers choose to purchase. The other statements describe different ideas: the price–quantity supplied relationship is shown by the supply curve; the relation between quantity supplied and time isn’t the standard single-curve depiction; and a link between demand and supply refers to how the two curves interact to determine market equilibrium, not the specific demand curve itself.