The demand curve is a graphical representation that illustrates the relationship between the price of a good or service and the quantity demanded by consumers over a given period. It typically slopes downward from left to right, indicating that as prices decrease, the quantity demanded increases, assuming all other factors remain constant (ceteris paribus).

Demand Curve

demand curve

Graphical representation is a visual method of presenting data or information, allowing for easier interpretation and analysis by highlighting patterns, trends, and relationships. It encompasses various forms such as charts, graphs, and diagrams, each suited to different types of data and analytical needs.

graphical representation

Relationship between price and quantity

quantity demanded

good or service

slopes downward

prices decrease

quantity demanded increases

Ceteris Paribus is a Latin phrase meaning 'all other things being equal,' used in economics and other social sciences to isolate the effect of one variable by assuming that other relevant factors remain constant. It is a fundamental assumption that allows for simplified analysis and understanding of complex systems by focusing on the relationship between two variables without external interference.

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