Demand curve

Definition

A demand curve is a graphical representation that shows the relationship between the price of a product or service and the quantity demanded by consumers over a period. It typically slopes downward from left to right, indicating that as prices fall, demand increases.

Related terms

Law of Demand: This law states that, all else being equal, as the price of a good or service decreases, consumer demand for it will increase.

Supply Curve: A graphical representation showing the relationship between the price of a product and the amount of the product that suppliers are willing to produce and sell.

Market Equilibrium: The point at which the supply of goods matches demand, indicated by where the supply curve and demand curve intersect