Question

Which of the following is not true of a demand curve? multiple choice

a. it has negative slope.
b. it shows the amount consumers want to buy at various prices.
c. it relates the price of an item to the quantity demanded of that item.
d. it reflects sellers' reservations prices.

Answer 1

The statement that is not true of a demand curve is that d. it reflects sellers' reservation prices; this would be true for the supply curve instead. Demand curves have a negative slope and adhere to the law of demand.

Step-by-step explanation:

The statement that is not true of a demand curve is d. it reflects sellers' reservation prices. Demand curves graphically represent the relationship between price and the quantity demanded by consumers, not sellers. A demand curve typically has a negative slope, meaning it slopes downward from left to right, which reflects the law of demand: higher prices lead to lower quantity demanded, and lower prices lead to higher quantity demanded. Sellers' reservation prices would be reflected in the supply curve, not the demand curve.