What is a Demand Curve?

The demand curve represents the quantity of goods required at each price. A demand curve is a curve that shows the relationship between price and demand. It refers to a table or curve of the amount of goods that a buyer is willing to buy at each price level when other conditions are the same. The demand cannot be observed. The demand curve can appear in any shape, and the demand curve conforming to the demand theorem can only be inclined to the lower right. The demand curve usually takes price as the vertical axis (y-axis) and quantity as the horizontal axis (x-axis). In a demand curve that slopes downward to the right and is straight, the price elasticity of demand at the central point is equal to one. The price elasticity of demand in the above part is greater than one, while the price elasticity of demand in the following part is less than one.

demand curve

There are many forms of demand relationship, such as: narrative method, directly described in words; functional method, use

The demand curve is one of the core tools for economics to study the relationship between supply and demand.

Compared

The downward demand curve is the accepted mainstream view. It does not expand its academic definition here. In short, it means that the quantity of demand for goods is inversely proportional to the price. When the price increases, the quantity of demand decreases, and when the price decreases, the quantity of demand increases. It fits common sense.

Regarding whether there are more general economic laws behind these phenomena, I have consulted some famous American scholars. Formation of some conjectures that are not very sure, but slowly moving towards shape:

The slope of the demand curve reflects

Demand curves can be divided into the following three categories:

1. Individual Demand Curve: The relationship between the amount of a single consumer willing to buy a product and its price;

2,

The corporate demand curve can also be called the demand curve of the market that the company faces. Such a name may be more acceptable to people. If it is considered to be the superimposed result of the demand curve of consumers in the market that have demand for the company's products, it is completely wrong.

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The demand curve has the following applications:

1. When the price is determined, find the maximun amount of a good that will be purchased if a given price is charged;

2. The maximum the consumers will pay for a specific amount of a good at a given quantity of goods.