Demand Curve
A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at that price.
Business Glossary provided by Plannit.ai
The demand curve is a fundamental concept in economics that illustrates the quantity of a good or service that consumers are willing and able to purchase at various prices, assuming all other factors remain constant (ceteris paribus). Typically, the curve slopes downward from left to right, reflecting the law of demand — as the price of a good decreases, the quantity demanded increases, and vice versa. It can be used to analyze consumer behavior and is crucial for businesses in setting pricing strategies.
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