Answer :
A demand curve shows how changes in quantity affect price. The demand curve is a graph that will have a good or service and how the quantity purchased is related to the price point the item is set at. Overall, the relationship between demand and price are directly related and depicted on the graph.
Option (b) is correct. The A demand curve shows how changes in quantity affect the price.
Further Explanation:
Demand curve:
The demand curve is the graphical representation of the demand and price of a product. It shows the relationship between demand and supply. The change in the demand and price of the product can be effectively presented by the way of the graph. It is assumed that other things will remain constant.
Justification for the correct and incorrect option:
a.
Quality affect price: This is an incorrect option because the demand curve does not establish the relationship between the quality and price of the product.
b.
Quantity affect price: This is the correct option because the demand curve shows the relation between the quantity (demand) and price. It will show how the change in demand will affect the price of the product.
c.
Quantity affects income: This is an incorrect option because the demand curve represents the relation between the quantity and price of the product.
d.
Quality affects elasticity: This is an incorrect option because the demand curve does not showcase the relationship between the quality and elasticity of the product.
Thus, option (b) is correct. The A demand curve shows how changes in quantity affect the price.
Learn More:
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Answer Details:
Grade: Senior School
Chapter: Demand and supply
Subject: Economics
Keywords: demand curve, change, quality, price, product, elasticity, increase, decrease, shift, demand, and supply.