Which of the following is true about the demand curve?

Question

BlackTom AI · Accepted Answer

The question asks about the true statement regarding the demand curve, so I’ll evaluate each option in turn.

Option 1: 'It usually slopes upward and to the right.' This is incorrect because the demand curve typically slopes downward and to the right, reflecting the inverse relationship between price and quantity demanded (as price falls, quantity demanded generally rises). A slope upward would imply a positive relationship, which is not the usual case for demand.

Option 2: 'It shows the quantity of product customers will buy in a market during a period of time even if other factors change.' This is misleading. The demand curve shows the quantity demanded at various prices, holding other factors constant (ceteris paribus). If other factors change (income, tastes, prices of related goods, etc.), the demand curve itself would shift, not the point-by-point movement along the curve. The wording here incorrectly conflates shifts with movement along the curve.

Option 3: 'It is used to illustrate the effect of price on the quantity supplied.' This describes the supply curve, not the demand curve. The supply curve shows how much producers are willing to supply at different prices, whereas the demand curve deals with consumers.

Option 4: 'It is always graphically depicted by a straight line.' While many simplified diagrams use a straight line, the actual demand curve can be curved (typically downward-sloping) depending on the market and determinants. So this statement is not universally true.

Option 5: 'It shows the relationship between product demand and product price.' This statement accurately captures the core purpose of the demand curve: it depicts how quantity demanded varies with price, holding other factors constant in the usual representation.

Summarizing the evaluations: options 1, 2, 3, and 4 each contain a misconstrual or overly broad/general claim about the demand curve, whereas option 5 aligns with the standard definition of what a demand curve represents. The correct understanding centers on the price-quantity demanded relationship depicted by the demand curve.

MKTG1199 Module 8: Wrap-Up

Which of the following is true about the demand curve?

View Explanation

Log in for full answers

Similar Questions

Using the demand schedule below representing a linear demand curve, answer the following question. If the price increases by $20 then the quantity demanded will ____________. Price Quantity $300 15 $250 30 $200 45 $150 60

A demand curve is a graph that relates

The above figure shows a graph of the market for pizzas in a large town. No pizzas will be demanded unless price is less than (enter only a number):

According to the Law of Demand, the demand curve for a good will (choose all correct answers):

A decrease in demand shifts the demand curve to the left.

A typical demand curve will tell Palo that the higher the price of the cashmere sweaters his company makes,

Prestige products or services do not follow the Blank ______ curve.

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler