Definition of Demand curve:
A graph showing how the demand for a commodity or service varies with changes in its price.
The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. In a typical representation, the price will appear on the left vertical axis, the quantity demanded on the horizontal axis. .
The demand curve will move downward from the left to the right, which expresses the law of demand — as the price of a given commodity increases, the quantity demanded decreases, all else being equal.
Graph curve that normally slopes downward towards the right of the chart (except for a Giffen good, where it slopes toward the left), showing quantity of a product (good or service) demanded at different price levels. Customarily, the price is plotted on vertical (Y) axis and quantity on the horizontal (X) axis, and it is assumed that (in the short run) income levels, price of substitutes, and customer preferences, remain unchanged. Demand curves of the individual products are aggregated to give a market demand curve and, when drawn together with the supply curves, show the equilibrium price at the intersection of the two curves.
How to use Demand curve in a sentence?
- If you want to try and decide how much of a product to produce you should look at the demand curve and adjust.
- When looking at the demand curve , he noticed that when the price of the product goes up, the demand of the product goes down.
- However, the position of the demand curve for labour can vary according to either the level of capital employed or the price of the output good.
- Looking at the demand curve should help you to know how much of a product you should make at any given time.
Meaning of Demand curve & Demand curve Definition