B1. The Demand Curve

What does the demand curve represent?

• The relationship between price and supply

• The relationship between price and quantity demanded

• The total revenue of a company

• The cost of production for goods

Why does the demand for oil increase as its price decreases?

• Because oil substitutes become unavailable

• Because people use oil for both high-value and low-value purposes

• Because oil becomes more valuable

• Because oil production increases

Which of the following is an example of a high-value use of oil?

• Heating homes

• Producing gasoline

• Fueling jet planes

• Making plastic toys

What happens when oil prices rise significantly?

• People buy more oil for low-value uses

• People prioritize high-value uses of oil

• Oil demand remains unchanged

• Oil substitutes become less popular

How does the demand curve summarize consumer behavior?

• It illustrates how people react to price changes

• It calculates the total quantity of goods produced

• It shows how people respond to changes in supply

• It predicts future market trends