Embedded Files
Demand: In economics, demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time
Let's say Ben Is an Ice-cream consumer, let us have a look at his demand for Ice- cream
As we go can see here that as the price of ice-cream is rising Ben's demand for Ice-cream is going down, hence we see here is a inverse relationship between Price of Ice-cream and quantity demanded of Ice- cream.
Law of Demand: The Quantity demanded of a good falls as the price of the good rises
Demand Curve: Using our previous example of Ben we can use the demand curve to show his demand.
The Demand Curve Slopes Down because:
We assume if a product becomes more expensive, consumers are more likely to go for subsitutes.
More expensive a product becomes the less consumers are likely to buy it
The demand curve is very similar to the marginal utility curve.
Page updated
Report abuse