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Demand Curve

Demand Curve

The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. In a typical representation, the price appears on the left vertical axis while the quantity demanded is on the horizontal axis.

A demand curve doesn't look the same for every product or service. When the price rises, demand generally falls for almost any good, but the drop is much greater for some goods than for others. This is a reflection of the price elasticity of demand, a measurement of the change in consumption of a product in relation to a change in its price. The elasticity of demand for products varies between and within product categories, depending on the product’s substitutability.

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