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Which of the following is NOT true of a demand curve?

A. It has a 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

User Osdiab
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1 Answer

2 votes

Final answer:

The correct answer is option D. Option D, 'It reflects sellers reservation prices', is NOT true of a demand curve. A demand curve represents the buyer's willingness to pay, not the seller's price expectations, which is the domain of a supply curve.

Step-by-step explanation:

The student's question relates to the characteristics of a demand curve which is an important concept in economics, a sub-field of social studies. A demand curve, typically graphed with price on the vertical axis and quantity demanded on the horizontal axis, reflects buyers' willingness and ability to purchase a product at different prices. Each option given in the student's question (A to D) pertains to attributes of a demand curve except one.

Options A, B, and C correctly state that a demand curve has a negative slope, shows the amount consumers want to buy at various prices, and relates the price of an item to the quantity demanded, respectively. However, option D is incorrect because a demand curve reflects buyers' willingness to pay for a product, not sellers' reservation prices, which would instead be represented by a supply curve. Therefore, the correct answer to the question of which statement is NOT true of a demand curve is D - It reflects sellers reservations prices.

User Damathryx
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