What does the D line on a supply and demand graph represent?

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Prepare for the ASU ECN212 Microeconomic Principles Exam 1. Study with multiple choice questions and detailed explanations. Ace your exam!

The D line on a supply and demand graph specifically represents demand from consumers. This line reflects the relationship between the price of a good or service and the quantity that consumers are willing to purchase at various price points. As the price decreases, typically, the quantity demanded increases, illustrating the fundamental concept of the law of demand, which states that, all else being equal, an increase in price results in a decrease in quantity demanded, and vice versa.

This representation allows for analysis of consumer behavior and market dynamics, providing insight into how changes in price can influence the purchasing decisions of consumers. Understanding this is crucial for grasping how markets operate and how equilibrium is reached through the interaction of supply and demand.

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