-In Diagram 27a, the demand curve represented by line D shows
A) that there is a positive relationship between price and quantity demanded.
B) that there is an inverse relationship between price and quantity demanded.
C) that the relationship between price and quantity demanded is both positive and inverse.
D) that the relationship between price and quantity demanded is circular.

Question

-In Diagram 27a, the demand curve represented by line D shows
A) that there is a positive relationship between price and quantity demanded. 
B) that there is an inverse relationship between price and quantity demanded. 
C) that the relationship between price and quantity demanded is both positive and inverse. 
D) that the relationship between price and quantity demanded is circular.

Quizplus · Accepted Answer

The demand curve typically shows an inverse relationship between price and quantity demanded, meaning as price increases, quantity demanded decreases, and vice versa. This is a fundamental principle of economics.

-In Diagram 27a, the Demand Curve Represented by Line D