What does a demand curve illustrate?

A demand curve illustrates the relationship between price and consumer behavior by showing how the quantity of a good or service demanded by consumers changes as the price changes. Typically, a demand curve slopes downward from left to right, indicating that as the price of a good decreases, the quantity demanded increases, and conversely, as the price increases, the quantity demanded decreases. This negative relationship between price and quantity demanded reflects the law of demand, which describes consumer purchasing habits and willingness to buy at various price levels. The demand curve is a fundamental tool in microeconomics, allowing economists and businesses to forecast consumer behavior, analyze market trends, and make informed decisions regarding pricing and production.

In contrast, the other choices focus on different economic concepts that do not directly pertain to the representation of demand: the correlation between supply and production levels relates more to supply curves, total revenue generated by companies is a financial concept that may not directly reflect consumer behavior, and the amount of goods produced by manufacturers pertains to production rather than demand dynamics.