What is demand? How does it operates ?
Demand Schedule: Definition and Real Life Example The demand curve is a visual representation of how many units of a good or service will be bought at each possible price. It plots the relationship between quantity and price that's been calculated on the demand schedule . That's a table that shows exactly how many units of a good or service will be purchased at various prices. As you can see in the chart, the price is on the vertical (y) axis and the quantity is on the horizontal (x) axis. This chart plots the conventional relationship between price and quantity. The lower the price, the higher the quantity demanded. As the price decreases from p0 to p1, the quantity increases from q0 to q1. This relationship follows the law of demand . It states that the quantity demanded will drop as the price rises, ceteris paribus , or "all other things being equal." The relationship between quantity and price will follow the demand curve as long as the four