Given a table that displays various prices and the corresponding quantities demanded, which of the following best describes the relationship illustrated by the demand curve?

• A. Price and quantity demanded are unrelated.
• B. As price increases, quantity demanded decreases.
• C. Quantity demanded remains constant as price changes.
• D. As price increases, quantity demanded increases.

Answer: (B)

Verified step by step guidance

1. Understand the law of demand, which states that, all else equal, as the price of a good increases, the quantity demanded of that good typically decreases.
2. Examine the given table carefully to observe how quantity demanded changes as price changes. Look for a pattern where an increase in price corresponds to a decrease in quantity demanded.
3. Identify whether the data shows any exceptions to the law of demand, such as quantity demanded remaining constant or increasing with price, which would be unusual for a typical demand curve.
4. Conclude that if the table shows quantity demanded decreasing as price increases, it illustrates the standard downward-sloping demand curve relationship.
5. Therefore, the best description of the relationship is: 'As price increases, quantity demanded decreases.'