Index
The Demand Curve 1
The Demand Curve 2
The Demand Curve 3
The Laws of Supply and Demand - 4
The Laws of Supply and Demand - 5
A ''Contraction'' of Demand - 6
''Ceteris Paribus'' - 7
An ''Expansion'' of Demand - 8
Marginal Utility - 9
Marginal Utility - 10
Marginal Utility - 11
Marginal Utility - 12
Consumer Surplus - 13
Consumer Surplus - 14
Price Discrimination - 15
An ''Expansion'' of Supply - 16
An ''Expansion'' of Supply - 17
Market Equilibrium - 18
Market Equilibrium - 19
Market Equilibrium - 20
Movements of the Demand Curve - 21
Movements of the Demand Curve - 22
Movements of the Demand Curve - 23
Inferior Goods - 24
Movements of the Demand Curve - 25
Movements of the Supply Curve - 26
Movements of the Supply Curve - 27
Movements of the Supply Curve - 28
The Income Effect - 29
The Substitution Effect - 30
The Substitution Effect - 31
The Substitution Effect - 32
The Substitution Effect - 33
Complements - 34
Complements - 35
Review: Factors Effecting Demand - 36
Review: Factors Effecting Demand - 37
The Goals of Firms - 38
The Goals of Firms - 39
To: Elasticity

The Demand Curve - 3

The data from an individual demand schedule or a market demand schedule can be graphed as a demand curve.

Price (per unit) is shown on the vertical (or ''Y'') axis, and the quantity demanded per unit of time is shown on the horizontal (or ''X'') axis. The demand curve relates the price (per unit) of a good or service with the quantity of that good or service which a consumer is willing to buy (in a certain period of time).

In the diagram, we can see this relationship. If the price of tomatoes is $5 per kilogram, consumers will buy 1 kilogram of tomatoes per week. If the price of tomatoes falls to $4 per kilogram, two kilograms of tomatoes will be bought per week.

If we add up all the demand curves of all consumers (for a particular good or service), we can prepare a market demand curve.