1. Law Of Demand

2. Law of Demand It states that people will buy more of a product at a lower price than at a higher price, if nothing changes. It states that at a lower price, more people can afford to buy more goods and more of an item more frequently, than they can at a higher price. It states that at lower prices, people tend to buy some goods as a substitute for others more expensive.

3. Demand Curve A demand curve is a graphical or mathematical diagram that shows the relationship between the price and quantity of a product that consumers are willing to buy. In business, demand curves are useful when testing and measuring the supply and demand of certain products within a competitive market. Graphed over time, demand curves assist businesses in determining if a certain product is actually profitable at the pricing point on the curve where it is in demand.

4. Graphing a demand curve begins with two perpendicular lines forming a right angle. The y-axis, or vertical line, represents “price” as the dependent variable, and the x-axis, or horizontal line, represents the “quantity demanded” as the independent variable. Price increments move up along the outside of the y-axis with the highest price nearest the top.

5. Demand Curve