3)What is the relationship between a demand schedule and a demand curve? * a)A demand schedule shows the various quantities of the good demanded, while a demand curve shows the various prices. b)A demand schedule is a numerical tabulation of the quantity demanded of a good at different prices, while a demand curve is a graphical representation of the law of demand. c)A demand curve shows the various quantities of the good demanded, while a demand schedule shows the various prices. d)A demand curve is a numerical tabulation of the quantity demanded of a good at different prices, while a demand schedule is a graphical representation of the law of demand
3)What is the relationship between a demand schedule and a demand curve? *
a)A demand schedule shows the various quantities of the good demanded, while a demand curve shows the various prices.
b)A demand schedule is a numerical tabulation of the quantity demanded of a good at different prices, while a demand curve is a graphical representation of the law of demand.
c)A demand curve shows the various quantities of the good demanded, while a demand schedule shows the various prices.
d)A demand curve is a numerical tabulation of the quantity demanded of a good at different prices, while a demand schedule is a graphical representation of the law of demand.
The Correct Answer and Explanation is :
Correct Answer:
b) A demand schedule is a numerical tabulation of the quantity demanded of a good at different prices, while a demand curve is a graphical representation of the law of demand.
Explanation:
The relationship between a demand schedule and a demand curve lies in how they represent the relationship between price and quantity demanded. Both tools illustrate the law of demand, which states that, all else being equal, as the price of a good decreases, the quantity demanded increases, and vice versa.
- Demand Schedule:
- The demand schedule is a table that lists various prices of a good or service and the corresponding quantity demanded at each price. It provides numerical data, which is often used to analyze consumer behavior.
- For instance: Price ($) Quantity Demanded (Units) 10 50 8 70 6 100
- This tabular representation allows economists to see the exact values of demand at specific price points.
- Demand Curve:
- The demand curve is the graphical representation of the demand schedule. It plots the price on the vertical axis (y-axis) and the quantity demanded on the horizontal axis (x-axis). By plotting the points from the demand schedule and connecting them, you get a curve that typically slopes downward from left to right.
- The downward slope of the curve visually demonstrates the inverse relationship between price and quantity demanded.
- Relationship:
- The demand curve is derived directly from the demand schedule. The numerical data in the schedule serves as the foundation for plotting the curve.
- While the demand schedule provides detailed numerical insights, the demand curve offers a visual summary that can be more intuitive for analyzing trends or comparing demand across different goods.
Together, they complement each other in understanding consumer demand and market dynamics.