Demand Curve
The relationship of price and quantity demanded can be exhibited graphically as the demand curve. The curve is generally negatively sloped. The curve is two-dimensional and depicts the relationship between two variables only: price and quantity demanded. All other factors affecting demand are held constant. However, these factors are part of the demand curve and influence the location of the curve. In many economics graphs, such as that of the demand curve, the independent variable is plotted on the vertical axis and the dependent variable on the horizontal axis. Consequently, the graphical presentation is technically that of the equation P = f(Q) where f(Q) is the inverse demand function, although the graph is referred to simply as the demand curve.
Read more about this topic: Demand (economics)
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