Question

The relation between the consumer’s optimal choice of the quantity of a good and its price is called?

• A. Supply Function
• B. Demand Function
• C. Cost Function
• D. Output Function

Hint:

Remember: Demand = consumer side, Supply = producer side. The demand function is always about the consumer’s optimal choice at given prices.

Answer 1

The Correct Option is B

Step 1: Recall definitions.
- Supply Function: Shows the relation between the quantity supplied and price.
- Demand Function: Shows the relation between the quantity demanded and price, holding other factors constant.
- Cost Function: Relates cost with output level.
- Output Function: Relates input to output production.
Step 2: Apply to the question.
The consumer’s optimal choice of quantity in relation to the price refers directly to the demand function. Step 3: Conclusion.
Hence, the correct answer is (B) Demand Function.
Final Answer: \[ \boxed{\text{Demand Function}} \]