The Curve of Demand

The curve of demand is a graphical representation showing how the quantity of a product demanded by consumers changes as its price changes. Typically, as the price decreases, demand increases, creating a downward-sloping curve. This reflects consumer behavior: lower prices often attract more buyers, while higher prices deter them. The curve helps businesses and economists understand market dynamics and make informed decisions about pricing, production, and inventory. Factors like consumer preferences, income levels, and the availability of alternatives can also affect demand, leading to shifts in the curve.