Demand Curve?

Question

What is a demand curve? On what basis is the curve drawn? Which basice law of economics is illustrated by the demand curve?Why is the demand curve downward sloping?

Answer 1

The demand curve is an ex-ante representation of the different prices and it corresponding quantity demanded by individual. Typically, it is a downward sloping function, as intuitively, the cheaper the good is, the more rational individual will demand. This implies the inverse relationship between price and quantity demanded, and essentially, this spells out the law of demand. The y-axis intercept reflects the maximum price which  individual is willing to pay for the good, and the area below the curve represents the consumer surplus of cunsumer.

Answer 2

A demand curve is a graphical representation of how much people are willing to pay for a certain good, or how many they will want at a given price.  The law of demand states that as the price increases, fewer units of a good will be demanded.  If you draw a graph of this, it will slope downward.

Answer 3

Demand curve is a graphic concept to identify a relationship between price,  supply, and demand.  

Industrial and technical economics expose distortions in the simplistic demand curve.  Anomalies due to accidental or catastrophic events have typical rather than atypical impact.