Demand Curve

When we want something we want it...until we see the price, at which point we decide we want it even more (or less). This is the stuff of demand curves.

Demand curves show how the “demand,” or the want, of a good or service changes with its change in price, i.e. how much it’s gonna cost ya.

On your standard supply and demand curve, your demand curve is going to be the one that’s negatively sloped, which means that as the price decreases (moving “down” on the y-axis), the quantity demanded increases (moving “right” on the x-axis).

Why are demand curves important? Where demand curves cross supply curves is where we have market equilibrium, where supply meets demand. Which means suppliers are supplying all the stuff demanders are wanting to buy, at the same price and quantity. Since demand is what keeps the economy running (and thus the modern world going ‘round), it’s kind of a big deal.