Question

Which of the following is true about the demand curve?

A) It is used to illustrate the effect of price on the quantity supplied.
B) It is always graphically depicted by a straight line.
C) It shows the quantity of product customers will buy in a market during a period of time even if other factors change.
D) It usually slopes upward and to the right.
E) It shows the relationship between product demand and product price.

Answer 1

The true statement about the demand curve is that it shows the relationship between product demand and product price, usually sloping downwards due to the law of demand.

Step-by-step explanation:

The statement that is true about the demand curve is E) It shows the relationship between product demand and product price. A demand curve typically slopes downwards from left to right, illustrating the law of demand. This law indicates that as the price increases, the quantity demanded decreases, and vice versa.

Demand curves can vary in their steepness and curvature, but this downward slope is consistent. Moreover, the concept of ceteris paribus is crucial; a demand curve assumes that all other factors except price are held constant.