In microeconomics, what does a demand curve show?

• A. The relationship between the price of a good and the quantity demanded, holding other factors constant
• B. The relationship between consumers' income and the quantity demanded, holding the price constant
• C. The relationship between the price of a good and the quantity supplied, holding other factors constant
• D. The relationship between total revenue and total cost as output changes

Answer: (A)

Verified step by step guidance

1. Understand that a demand curve is a fundamental concept in microeconomics representing consumer behavior.
2. Recognize that the demand curve shows how the quantity demanded of a good changes in response to changes in its price.
3. Note that the demand curve assumes other factors (like consumer income, tastes, and prices of related goods) are held constant—this is known as the ceteris paribus condition.
4. Recall that the demand curve is typically downward sloping, indicating that as price decreases, quantity demanded increases, and vice versa.
5. Conclude that the demand curve specifically illustrates the relationship between the price of a good and the quantity demanded, holding other factors constant.