demand curve

  

Definition

Graph curve that normally slopes downward towards the right of the chart (except for a Giffen good, where it slopes toward the left), showing quantity of a product (good or service) demanded at different price levels. Customarily, the price is plotted on vertical ('Y') axis and quantity on the horizontal ('X') axis, and it is assumed that (in the short run) income levels, price of substitutes, and customer preferences, remain unchanged. Demand curves of the individual products are aggregated to give a market demand curve and, when drawn together with the supply curves, show the equilibrium price at the intersection of the two curves.

Use demand curve in a sentence

  • If you want to try and decide how much of a product to produce you should look at the demand curve and adjust.

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  • Looking at the demand curve should help you to know how much of a product you should make at any given time.

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  • When looking at the demand curve, he noticed that when the price of the product goes up, the demand of the product goes down.

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