TAILIEUCHUNG - Supply and Demand

The demand curve is the graphic representation of the relationship between price and quantity demanded. The demand curve slopes downward and to the right. As the price goes up, the quantity demanded goes down. The demand curve is the graphic representation of the relationship between price and quantity demanded. The demand curve slopes downward and to the right. As the price goes up, the quantity demanded goes down. | Supply and Demand Chapter 4 Laugher Curve Teach a parrot the terms of supply and demand and you’ve got an economist. Thomas Carlyle Demand Demand means a willingness and capacity to pay. Demand Prices are the tool by which the market coordinates individual desires. The Law of Demand Quantity demanded rises as price falls, other things constant. Quantity demanded falls as price rises, other things constant. Thus, there is an inverse relationship between price and quantity demanded. The Law of Demand What accounts for the law of demand? People tend to substitute other goods for goods whose price has increased. The Demand Curve The demand curve is the graphic representation of the relationship between price and quantity demanded. The demand curve slopes downward and to the right. As the price goes up, the quantity demanded goes down. The Demand Curve The negative slope tells us that quantity demanded varies indirectly—in the opposite direction—with price. Other Things Constant “Other .

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