A Demand Curve Shows

question 127

Multiple Choice

A demand curve shows

• A)the willingness of consumers to buy a product at different prices.
• B)the willingness of consumers to substitute one product for another product.
• C)the relationship between the price of a product and the demand for the product.
• D)the relationship between the price of a product and the total benefit consumers receive from the product.

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Definitions:

Utility Function

A utility function represents the preferences of a consumer over a set of goods or services by assigning values to each possible bundle, reflecting the satisfaction gained.

Berries

Small, juicy fruits with seeds enclosed within the flesh, often consumed raw or used in various culinary dishes.

Nuts

Edible seeds encased in hard shells, often consumed as snacks or used as ingredients in cooking.

Utility Function

An equation that describes a consumer's preference for a set of goods and services, relating each bundle of goods to a level of utility.