Demand Curve

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Definition: Demand Curve


Demand Curve

Quick Summary of Demand Curve


The demand curve is an economic tool showing the amount of something that is demanded at a point in time and at a specific price.



Video Guide For Demand Curve




What is the dictionary definition of Demand Curve?

Dictionary Definition


A graph showing the demand for a product at different price points.


Full Definition of Demand Curve


The demand curve is a graphic representation of the demand schedule and performance. The demand curve is drafted on the Production Possibility Frontier (PPF) with price on the vertical axis and quantity on the horizontal axis. The demand curve normally slopes downward from left to right. In doing so, the demand curve reflects incremental changes of higher quantity demanded at lower prices. Frequently, the demand curve interacts with a supply curve on the Production Possibility Frontier, depicting the relationship between market supply and market demand. When the demand curve and supply curve cross, the market price is said to be at equilibrium. Economists often make use of the demand curve to calculate and project the demand and pricing for capital goods, services, labour, as well as many other economic variables.


Examples of Demand Curve in a sentence


You should find out where your product lies on the demand curve and try to price it exactly at the right spot.

The demand curve was a useful explanatory tool during the meeting last Friday as we communicated all of our marketing ideas.

The shampoo products have met the demand curve after three months at the markets all over the world and here is the graph to prove it.


Related Phrases


aggregate demand curve
demand schedule
demand function


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Definition Sources


Definitions for Demand Curve are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th November, 2021 | 0 Views.