demand curve
Definition
A demand curve is a graphical representation that shows the relationship between the price of a product or service and the quantity demanded by consumers over a period. It typically slopes downward from left to right, indicating that as prices fall, demand increases.
Analogy
Imagine you're shopping for your favorite brand of sneakers. If the price drops, you and others are more likely to buy more pairs. The demand curve is like a slide at the park; as the price slides down, the quantity of sneakers everyone wants to buy climbs up.
Related terms
Law of Demand: This law states that, all else being equal, as the price of a good or service decreases, consumer demand for it will increase.
Supply Curve: A graphical representation showing the relationship between the price of a product and the amount of the product that suppliers are willing to produce and sell.
Market Equilibrium: The point at which the supply of goods matches demand, indicated by where the supply curve and demand curve intersect
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