The Demand Curve

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    The Demand Curve

    • The demand curve shows the relationship between the price of a product and the quantity demanded
    • Price is plotted on the y-axis, demand on the x-axis.
    • The data from which a demand curve is derived is the demand schedule
    • The data for a demand schedule can be gained from past records and questionnaires, where customers are asked on issues like price.
    • Notable points:
    • Notable Points
      • Normal Inverse relationship
      • Linear relationship
      • Relationship only applies to holidays in June
      • Can extrapolate data:
        • At £325, 900 holidays will be demanded

     

    • Demand curves can also represent the demands of an individual.
    • When representing just an individual, the curve may be curvilinear

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