Demand Curve

Definition

The demand curve illustrates the relationship between the quantity demanded of a good or service and its price. It shows that as prices decrease, consumers are willing to buy more of the good or service.

Related terms

Law of Demand: The principle that states there is an inverse relationship between price and quantity demanded.

Shift in Demand Curve: When factors other than price cause changes in the quantity demanded at each price level.

Elasticity of Demand: A measure of how responsive quantity demanded is to changes in price.