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A demand curve shows the relationship between the price of something and the amount people will buy. The higher the price goes, the less of it you're going to sell. The demand curve has so many exceptions it's basically worthless. It's just a business-school exercise item. Let me throw out an exception: chocolate. Let's say it's August and chocolate's $10 per kilogram, and we're selling all we can make. In September I decide to raise the price to $15 per kilogram. All of a sudden sales of chocolate go UP drastically. Using a demand curve in isolation, sales of chocolate should have gone down. They went up because it's time to start making chocolate Santas. ------------------------------------------------------------------------------------------------- SEPERATE POST The demand curve is not worthless. "The demand curve graphs the relationship between the quantity demanded of a good and it's price, holding constant all other influences on consumers' planned purchases"(Parkin 1.). The example given above is inaccurate as it would not take into account the seasonal demand factors. If these factored in when preparing the demand curve you would find that it true. See; 1. Michael Parkin (1993), 2nd Edition, "Microeconomics". (pgs 73-78)
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Demand curve slopes downwards from left to right. this is the negative slope that shows the inverse relationship between price and demand. explain why does the demand curve slope downwards?
because demand decreases as price increases :)
What is the explanation for the shape of the demand curve?
It is a slope that goes downwards from left to right.
Why does demand curve for a monopolist slope downward?
Virtually all demand curves slope downwards, except for, perhaps, absolutely essential life-saving medication. The demand curve does not depend on the type of organization supplying the good or service, it depends on peoples willingness to buy that good or service. As price increases for any good or service, people are inclined to cut back on the quantities they purchase. Therefore, the demand curve slopes downwards.
Is the price elasticity constant along the demand curve?
Price elasticity of demand is equal to the instantaneous slope of the demand curve, or the slope of the tangent line at any point on the demand curve. So if the demand curve is represented by a straight downward sloping line, then yes, price elasticity of demand is equal to the slope of the demand curve. Otherwise, the slope at any point on the curve is changing, and you can find the it by taking the derivative of the demand curve function, which will find the Price elasticity of demand at any single point. Thus, the Price Elasticity of Demand changes at different points on the demand curve.
What is difference between slope and the calculation of elasticity for a linear demand curve?
Along a linear demand curve elasticity varies from point to point of the demand curve with respect to different price, but slope is constant
Demand curve slopes downwards from left to right. this is the negative slope that shows the inverse relationship between price and demand. explain why does the demand curve slope downwards?
because demand decreases as price increases :)
What is the explanation for the shape of the demand curve?
It is a slope that goes downwards from left to right.
Why does demand curve for a monopolist slope downward?
Virtually all demand curves slope downwards, except for, perhaps, absolutely essential life-saving medication. The demand curve does not depend on the type of organization supplying the good or service, it depends on peoples willingness to buy that good or service. As price increases for any good or service, people are inclined to cut back on the quantities they purchase. Therefore, the demand curve slopes downwards.
Is the price elasticity constant along the demand curve?
Price elasticity of demand is equal to the instantaneous slope of the demand curve, or the slope of the tangent line at any point on the demand curve. So if the demand curve is represented by a straight downward sloping line, then yes, price elasticity of demand is equal to the slope of the demand curve. Otherwise, the slope at any point on the curve is changing, and you can find the it by taking the derivative of the demand curve function, which will find the Price elasticity of demand at any single point. Thus, the Price Elasticity of Demand changes at different points on the demand curve.
What is difference between slope and the calculation of elasticity for a linear demand curve?
Along a linear demand curve elasticity varies from point to point of the demand curve with respect to different price, but slope is constant
What is the typical slope of a demand curve?
Downward
Which direction does the demand curve slope?
Is always negative. (should be in all caps for emphasis)
Is demand curve canbe upwardly sloping?
A demand curve can have an upwards slope. It solely depends on if the demand for an item is high or low.
How does the principle of diminishing marginal utility explain the slope of the demand curve?
The principle of diminishing marginal utility explains the slope of the demand curve by letting us be able to see which direction the slope is in, which is always downward.
What is the paradoxical demand curve?
Paradoxical demand curve is a theory that the slope of a product will change a different times. This is called Griffin's Paradox.
Explain the difference between price elasticity of demand and the slope of a demand curve?
Price elasticity is a specific type of slope of the demand curve. A perfectly inelastic demand means that the quantity will not change with the price. This line is perfectly vertical. A perfectly elastic demand curve is horizontal and means that at any given quantity, there is only one price. Also, a slope gets steeper, demand becomes more inelastic.
Indifference curve analysis is not much in use because it only tells us that demand curve has a negative slope except when they don't .?
indifference curve analysis is not much in use because it only tells us that demand curve has a negative slope except when they don't ....
