Demand curves.
Definition
A graph showing the relationship between the price of a good or service and the quantity consumers are willing and able to buy. The demand curve typically slopes downward from left to right, reflecting the law of demand: as price increases, quantity demanded decreases, and vice versa.
Examples
Real-world.
- 1 When gas prices rise, consumers drive less and demand for gas decreases
- 2 A sale on sneakers (lower price) leads to higher quantity demanded
- 3 When the price of streaming services increases, some consumers cancel subscriptions
Key Fact
The law of demand: price and quantity demanded have an inverse relationship (demand curves slope downward).