Question

A demand curve traces ___________.

Group of answer choices

1) The different levels of consumption of a good that occur when the price of a substitute good changes

2) The different levels of consumption of a good that provide the same level of utility

3) The different levels of consumption of a good that are affordable at a given price

4) The different levels of consumption of a good that occur when the good's price changes

Answer 1

A Demand curve in simple terms represents relationship between price in quantity demanded

How the change in price affect the consumer consumption or demand

It is based on the law of demand which says that if other things are held constant then price and quantity demanded are inversely related

If price increases then quantity demanded will decrease and vice versa

The demand curve is generally inversely sloped in nature showing the inverse relationship between price and quantity demanded

It does not represent utility or affordability

So options 2 and 3 are neglected

Substitutes are those goods which can replace each other

For example tea and coffee but demand Curve not represents substitutes

So the correct answer here is option D