Demand curve

The Demand Curve is a visual representation of how much consumers will pay for some good or service in an economy based on different prices often used by economists. The demand curve slopes downward to the right, indicating that as prices fall, more quantity is sought after.[1]

The dismal science
Economics
Economic Systems

  $  Market Economy
  €  Mixed Economy
  ☭ Socialist Economy

Major Concepts
People
v - t - e

Demand

Demand is usually meant as the demand curve. Where the demand curve intersects with the supply curve(equilibrium) is where the price of something is roughly determined. The terms demand and spending are sometimes used interchangeably. The year end aggregate demand in an economy can be thought of as total spending.[2] Because of the important role consumer and business spending plays in maintaining a healthy economy Keynesian economists often focus a lot on aggregate demand. A fall in demand often accompanies deflation and unemployment.

Quantity Demanded

The quantity demanded for a good or service is how much people are willing to buy of it at a certain point on a supply curve. If the supply curve for oranges shifts to the left because of a hurricane in Florida, the quantity demanded will fall, though the demand curve itself may not move for awhile.[3][4]

See Also
gollark: The code is overly generalised and so impossible to work on.
gollark: Or you can make it directly use APIONET.
gollark: PRs to ABR welcome.
gollark: (For us)
gollark: How non-spammy*!

References
  1. Taborrok, Alex. "The Demand Curve | Microeconomics". Marginal Revolution University. 2015-01-02. Retrieved 2020-01-26.
  2. "Demand curve | economics". Encyclopedia Britannica. Retrieved 2020-01-26.
  3. "Law of demand". Khan Academy.
  4. Kenton, Will. "Demand Curve". Investopedia. Retrieved 2020-01-26.
This article is issued from Rationalwiki. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.