Question

Why does an economist create a market demand curve?


to show how various conditions can change the demand for a good


to predict how people will change their buying habits when prices change


to learn what demands the market will make under unusual conditions


to have an idea of how a market would change if conditions in an area changed

Answer 1

An economist creates a market demand curve primarily **to predict how people will change their buying habits when prices change**. The demand curve illustrates the relationship between the price of a good and the quantity demanded by consumers, allowing economists to analyze how demand varies with price changes and to predict consumer behavior under different pricing scenarios.