Market Demand Curves

A market demand curve illustrates the relationship between the price of a product and the total quantity consumers are willing and able to purchase at each price point. Generally, as the price decreases, more people want to buy the item, leading to a higher quantity demanded. Conversely, when prices rise, demand tends to fall. The curve typically slopes downward from left to right, reflecting this inverse relationship. It helps businesses and analysts understand how changes in price can affect overall sales and is a fundamental tool in analyzing market behavior.