Demand Curve
Microeconomics
A basic diagram showing the inverse relationship between price and quantity demanded, illustrating the law of demand.
Curves and Elements
demand
Demand Curve (D): Shows the inverse relationship between price and quantity demanded. Slopes downward from left to right.
price change
Price Change: A fall in price from P1 to P2 causes movement along the demand curve.
quantity change
Quantity Change: Quantity demanded increases from Q1 to Q2 as price decreases.
The demand curve slopes downward from left to right, showing that consumers demand more of a good at lower prices.
When price falls from P1 to P2, quantity demanded increases from Q1 to Q2.
This movement along the demand curve is caused by a change in price, not a shift in demand.
The inverse relationship between price and quantity demanded is known as the law of demand.
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