Suppose the graph depicts five different demand curves for a good. Which of the following statements is true about the slope and position of a demand curve?

• A. A demand curve that is farther to the right represents a higher quantity demanded at each price.
• B. All demand curves for a good must pass through the origin.
• C. A steeper demand curve always indicates a higher quantity demanded at every price.
• D. A flatter demand curve means the good is less responsive to price changes.

Answer: (A)

Verified step by step guidance

1. Understand that a demand curve shows the relationship between the price of a good and the quantity demanded by consumers.
2. Recognize that when a demand curve shifts to the right, it means that at every price, consumers are willing to buy more of the good, indicating an increase in demand.
3. Know that demand curves do not have to pass through the origin; they can intersect the price or quantity axes depending on the good and market conditions.
4. Recall that the steepness (slope) of a demand curve reflects price sensitivity: a steeper curve means quantity demanded changes less with price (less elastic), while a flatter curve means quantity demanded changes more with price (more elastic).
5. Conclude that a steeper demand curve does not necessarily indicate a higher quantity demanded at every price; it only indicates lower responsiveness to price changes.