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Economic Analysis Custom Essay

    Economic analysis In economics the demand curve is a graph that represents the interrelation between the price of a particular commodity and the quantity that the consumers are in a position to acquire at a given price. The demand curve is plotted with the price on the vertical axis while the horizontal axis bears the quantities. The fact that the demand curve is normally slopped downwards from left to right shows that it has a negative association. The negative association implies that people tend to buy a product or service more often whenever the item price falls (Tieben, 2012). The function normally plotted in a demand curve is known as the inverse demand function.