The Demand Curve

The demand curve is a graphical representation showing how the quantity of a good or service people are willing to buy changes as its price changes. Typically, it slopes downward from left to right, indicating that as prices decrease, demand increases, and vice versa. This relationship reflects consumer behavior: when items are cheaper, more people tend to buy them. The demand curve helps businesses and policymakers understand market trends and make informed decisions about pricing, production, and resource allocation.