ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Prices are listed on the vertical axis.
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Quantities demanded are listed on the horizontal axis.
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The demand curve represents the various combinations of prices and quantities demanded that could occur in the market.
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It shows the demand for a product over time rather than at a given point in time.
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Detailed explanation-1: -Answer and Explanation: The correct answer is E: it shows the relationship between product demand and product price.
Detailed explanation-2: -The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. In a typical representation, the price will appear on the left vertical axis, the quantity demanded on the horizontal axis.
Detailed explanation-3: -Answer and Explanation: A change in the price of a good does not shift the demand curve.
Detailed explanation-4: -The three basic characteristics are the position, the slope and the shift. The position is basically where the curve is placed on that graph. For example if the curve is placed in a position far right on that graph, that means that higher quantities are demanded of that product at any given price.