A demand curve is a graphical representation of the relationship between price and quantity demanded of a particular good or service. It shows the quantity of a product that consumers are willing and able to purchase at different prices.
The demand curve is downward sloping, which means that as the price of a product decreases, the quantity demanded of that product increases. Conversely, as the price of a product increases, the quantity demanded of that product decreases.
The demand curve is influenced by factors such as consumer income, consumer tastes and preferences, the price of related goods or services, and consumer expectations. A shift in any of these factors can cause a shift in the demand curve.
The demand curve is an important tool for businesses and policymakers as it provides information on how changes in price may affect consumer demand and thus supply, revenue, and markets.
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