A demand curve shows the relationship between price and quantity demanded
A demand curve is a graph that shows how many units of a good consumers will buy at each possible price. As price rises, quantity demanded falls — so the curve slopes downward.
Formula
Qd = f(P), ceteris paribus
Real World
When Netflix raised its standard UK subscription price from £10.99 to £13.99 in 2023, it reported a slowdown in subscriber growth — consistent with the law of demand.
Exam Focus
Never confuse a movement along the curve (price change) with a shift of the curve; examiners deduct marks for this error.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
How well did you know this?