Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The relationship between price and quantity demanded
B
The total cost of producing goods
C
The relationship between supply and demand
D
The consumer preferences for a product
Understanding the Answer
Let's break down why this is correct
Answer
The demand curve in economics represents how much of a product or service consumers are willing to buy at different prices. It usually slopes downwards, showing that when prices are lower, people want to buy more, and when prices are higher, they want to buy less. This relationship helps businesses understand how to set prices and predict how much they will sell. For example, if the price of ice cream drops, more people might decide to buy it, which is shown by a movement along the demand curve. Overall, the demand curve helps illustrate the choices consumers make based on price changes.
Detailed Explanation
The demand curve shows how much of a product people want to buy at different prices. Other options are incorrect because This option confuses demand with production costs; This option mixes up demand with supply.
Key Concepts
Demand Curve
Topic
Supply and Demand Interactions
Difficulty
easy level question
Cognitive Level
understand
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