Which of the Following Statements Is TRUE

question 120

Multiple Choice

Which of the following statements is TRUE?

• A) A demand curve shows the relationship between a product's price and the number of units consumers want to buy at each price, assuming there are no changes in other factors affecting demand.
• B) A demand curve shows the relationship between consumer income and the quantity purchased of a product.
• C) A demand curve shows the relationship among consumer income, price of a product, quantity supplied, and the number of units of that product consumers want to buy.
• D) A demand curve is drawn with the assumption that demand equals supply.

---

Definitions:

Market Economy

An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses.

Relative to Demand

This refers to how the availability or desire for a product or service is influenced by consumer demand.

Price Controls

Government-imposed limitations on the prices that can be charged for goods and services in a market.

Energy Products

Energy products refer to commodities used for generating power, such as petroleum, natural gas, coal, and renewable energy sources.