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
