What is the demand curve?
The demand curve is a graphic or mathematical diagram that shows the relationship between the price and the amount of product that consumers are willing to buy. In business, demand curves are useful in testing and measuring supply and demand for certain products on the competitive market. In terms of demands that are graphs over time, businesses help to determine whether a product is actually profitable at the price point on the curve where it is requested.
The demand curve graphs begin with two perpendicular lines forming a right angle. The y axis, or a vertical line, represents a "price" as a dependent variable and the x -axis or a horizontal line represents the "required amount" as an independent variable. Price increases move up along the outer part of the Y -axis with the highest price closest to the peak. The increments of the amount move from left to right just below the X -axis line with a lowest figure closest to 90 ° point of the angle. Extension of increments nAnd both lines are that straight lines from every price across and up from each quantity form perfect graphs on the inside of the angle; This means that there are the same gaps between X and Y axes. The demand points (ie the correlation amount for any cost for which the buyer is) are now plotted into the chart to match both the Y -axis price and the amount on the X -axis. By connecting points, the demand curve creates. Points along the demand curve show how the required amount depends on the price of the goods. Because the price will always have a negative impact on consumer demand, all demand curves will tend to go down.
shift or change in the slope of the curve due to influential factors other than prices is called "change in demand". These factors or determinants affect the consumer's willingness to buy, and therefore 'qupozady antite. "Apparent determinants would include fluctuating income, personal preferences, expectations of price change, sudden expansion in market population and price increases in additional products or substitutes. EgFor example, the increase in demand would be shifted as a result of an increase in income to the right part and // The left would be shifted on the left.
Although many factors determine the behavior of consumer and product demand, the most important determinant is still the price. With all other factors that maintained constant, as the price of the product drops, the required amount will increase and with raising prices will drop the demand for the product. This principle of economic behavior is better known as the "law of supply and demand".