Which of the following statements accurately characterizes the demand curve?

• A. It shows the relationship between the price of a good and the quantity supplied.
• B. A movement along the demand curve is caused by changes in consumer income.
• C. It is always a straight line.
• D. It typically slopes downward from left to right, indicating an inverse relationship between price and quantity demanded.

Answer: (D)

Verified step by step guidance

1. Understand that the demand curve represents the relationship between the price of a good and the quantity demanded by consumers, not the quantity supplied.
2. Recognize that a movement along the demand curve is caused by a change in the price of the good itself, while changes in consumer income shift the entire demand curve rather than causing movement along it.
3. Know that the demand curve is not always a straight line; it can be linear or nonlinear depending on the specific demand function.
4. Recall the fundamental law of demand: as the price of a good decreases, the quantity demanded generally increases, and vice versa, which is why the demand curve typically slopes downward from left to right.
5. Summarize that the correct characterization of the demand curve is that it usually slopes downward, reflecting the inverse relationship between price and quantity demanded.