Final answer:
A demand curve is a graphical representation of the relationship between price and quantity demanded. It shows the amount consumers want to buy at various prices and always has a negative slope. However, it does not reflect sellers' reservation prices. So, the incorrect statement is it reflects sellers' reservations prices.
Step-by-step explanation:
The statement "It reflects sellers' reservation prices" is not true of a demand curve. A demand curve typically has a negative slope, reflects the amount consumers want to buy at various prices, and relates the price of an item to the quantity demanded of that item. It does not, however, indicate the sellers' reservation prices, which would be illustrated by the supply curve, not the demand curve.
Demand curves can appear steep or flat, straight or curved, but they all fundamentally slope downward from left to right, embodying the law of demand. The downward slope shows that as the price of an item increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases. This is a reflection of consumer behavior, not the sellers' pricing strategy.