What information is provided by a demand curve? What variables ...

[LaDunn]

What information is provided by a demand curve? What variables are measured along the axes of the graph?
 
  What will be an ideal response?

Question 2

Another name for a flat-rate tax in which the same tax rate applies to all income earners is a
 
  A) proportional tax.
  B) progressive tax.
  C) regressive tax.
  D) passive tax.

[shailee]

Answer to Question 1

The demand curve is a graphical representation of a demand schedule. The price per unit is measured along the vertical axis and the number of units per period of time is measured along the horizontal axis. The units of the good are identical so that quality is held constant. The price is the relative price, so all other prices are held constant. The demand curve pictures the relationship between relative price and the quantity purchased.

Answer to Question 2

A