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 CurveCharacteristics, 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

Other articles related to "demand curve, demand curves, demand, curve, curves":

Aggregation Problem - Aggregate Consumer Demand Curve
... The aggregate consumer demand curve is the summation of the individual consumer demand curves ... Aggregation introduces three additional non price determinants of demand - (1) the number of consumers (2) "the distribution of tastes among the consumers" and (3) "the distribution of ... a strong preference for a good increases ceteris paribus the demand for the good will change ...
Demand Curve - Taxes and Subsidies
... A sales tax on the commodity does not directly change the demand curve, if the price axis in the graph represents the price including tax ... Similarly, a subsidy on the commodity does not directly change the demand curve, if the price axis in the graph represents the price after deduction of the subsidy ... of tax and/or subtraction of subsidy then the demand curve moves inward when a tax is introduced, and outward when a subsidy is introduced ...
Atomistic Market - Approaches and Conditions
... the faster the average market price will adjust so as to equate supply and demand (and also equate price to marginal costs) ... do not react strategically to one another, the slope of the demand curve that a firm faces is the same as the slope of the market demand curve ... price (in particular, firms are described as each one of them facing a horizontal demand curve) ...
Demand (economics) - Demand Curve
... 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 ...
Consumer Theory - Substitution Effect
... effect basically affects the movement along the curve ... These curves can be used to predict the effect of changes to the budget constraint ... BC1, the consumer will re-allocate consumption to reach the highest available indifference curve which BC1 is tangent to ...

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