Registered Environmental Manager (REM) Practice Exam

What does the demand curve represent?

1. The relationship between product price and the quantity consumers are willing to purchase

2. The total number of products available at a low price

3. The quantity of a product that suppliers are willing to sell

4. The average price at which consumers buy products

The correct answer is: The relationship between product price and the quantity consumers are willing to purchase

The demand curve represents the relationship between product price and the quantity consumers are willing to purchase. It typically slopes downwards from left to right, indicating that as the price of a product decreases, consumers are generally willing to buy more of that product. This relationship is fundamental to understanding market dynamics and consumer behavior, reflecting how the quantity demanded varies with price changes. In contrast to other options, the demand curve specifically focuses on consumer willingness to purchase at various price levels rather than just the availability of products or supplier-level responses to prices. Other options may describe different concepts relevant to economics, such as supply dynamics or pricing behaviors, but they do not accurately capture the essence of the demand curve as it relates to consumer demand in response to price changes.