Refers to the schedule of quantities of a good that will be bought per unit time at various prices
Refers to a specific amount that will be demanded per unitof time at a specific place; it also refers to a point on thedemand curve
Shows the relationship between the quantity of thecommodity demanded and the price per unit of thiscommodity
Law of Demand
The quantity of a good demanded is inversely related tothe good’s price, other things constant.
Example of a Demand Curve
p(0, b)p = f(q) 0 (a,0) q
The slope of a supply curve is usually negative, as price increases,quantity demanded decreases and vice-versa.
-intercept of the demand curve (0,
) represents the highest price at which a consumer is willing to pay for the commodity.The
, 0), represents, the quantity that would bedemanded if the good is free.