Because a demand curve is the graphical representation of the law of demand, which specifies an inverse relationship between price and quantity demanded, ceteris paribus.
What is the demand curve?
- A demand curve is an economics graph that depicts the connection between a commodity's price (the y-axis) and the volume of that commodity demanded at that price (the x-axis).
- Demand curves can be used to model the price-quantity relationship for a single consumer (an individual demand curve) or for all consumers in a given market (a market demand curve) (a market demand curve).
- Demand curves are generally assumed to slope downward, as illustrated in the adjacent image.
- This is due to the law of demand, which states that when the price of good rises, the quantity demanded decreases.
- Certain unusual circumstances are exempt from this rule.
- Veblen goods, Giffen goods, and speculative bubbles are examples of these, in which buyers are drawn to a commodity as its price rises.
Therefore, because a demand curve is the graphical representation of the law of demand, which specifies an inverse relationship between price and quantity demanded, ceteris paribus
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