Demand Curve

In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to purchase at that given price. It is a graphic representation of a demand schedule. The demand curve for all consumers together follows from the demand curve of every individual consumer: the individual demands at each price are added together.

Demand curves are used to estimate behaviors in competitive markets, and are often combined with supply curves to estimate the equilibrium price (the price at which sellers together are willing to sell the same amount as buyers together are willing to buy, also known as market clearing price) and the equilibrium quantity (the amount of that good or service that will be produced and bought without surplus/excess supply or shortage/excess demand) of that market. In a monopolistic market, the demand curve facing the monopolist is simply the market demand curve.

Read more about Demand Curve:  Characteristics, Linear Demand Curve, Shift of A Demand Curve, Movement Along A Demand Curve, Discreteness of Amounts, Units of Measurement, Price Elasticity of Demand (PED), Taxes and Subsidies

Famous quotes containing the words demand and/or curve:

    I demand that my books be judged with utmost severity, by knowledgeable people who know the rules of grammar and of logic, and who will seek beneath the footsteps of my commas the lice of my thought in the head of my style.
    Louis Aragon (1897–1982)

    The years-heired feature that can
    In curve and voice and eye
    Despise the human span
    Of durance—that is I;
    The eternal thing in man,
    That heeds no call to die.
    Thomas Hardy (1840–1928)