Question

The demand curve:

a) is a graphical representation of the relationship between price and quantity supplied.
b) is a graphical representation of the relationship between price and quantity demanded.
c) depicts the relationship between production costs and output.
d) determines equilibrium price in a market.

Answer 1

The demand curve is a graphical representation of the relationship between price and quantity demanded. It helps determine equilibrium price in a market.

Step-by-step explanation:

The demand curve is a graphical representation of the relationship between price and quantity demanded.

For example, let's say the demand curve for a product shows that as the price decreases, the quantity demanded increases. This means that as the price of the product goes down, people are willing to buy more of it.

The demand curve plays an important role in determining equilibrium price in a market. The equilibrium price is the price at which the quantity demanded equals the quantity supplied, creating a balance between buyers and sellers.