Which two variables are typically plotted to represent the demand curve in microeconomics?

• A. Quantity supplied and market equilibrium
• B. Price and cost of production
• C. Income and supply
• D. Price and quantity demanded

Answer: (D)

Verified step by step guidance

1. Understand that a demand curve in microeconomics shows the relationship between two key variables: the price of a good and the quantity demanded by consumers.
2. Recall that the demand curve typically slopes downward, indicating that as the price decreases, the quantity demanded increases, and vice versa.
3. Identify the two variables to be plotted: the price of the good (usually on the vertical axis) and the quantity demanded (usually on the horizontal axis).
4. Recognize that other options like quantity supplied, market equilibrium, cost of production, income, and supply relate to different concepts such as supply curves or market analysis, not the demand curve itself.
5. Conclude that the correct variables to represent the demand curve are price and quantity demanded.