Chapter 7.2, Problem 2R

To determine

To evaluate: The factors or points represented by a demand curve.

Explanation of Solution

When there is a decrease in quantity demanded, there is an increase in the price of a product given, and everything is equal, the demand curve will shift from left to right.

The demand curve is a graphical depiction of the relation between a product or service's price and the sum demanded over a specified duration of time. The price will display on the vertical axis in a traditional depiction, the amount demanded at the horizontal axis.The demand curve will shift down from left to right, that depicts the demand law as the price of a given product rises , the amount demanded declines, keeping other things as constant or equal.

Economics Concept Introduction

Introduction: A graphical representation of the relation between a good or service's price and the amount demanded over a given duration of time is termed a demand curve. On the left vertical axis, the price is shown and the quantity needed is shown on the horizontal axis in a traditional representation.