In
economics, the demand curve can be defined as the
graph depicting the relationship between the price of a certain
commodity, and the amount of it that consumers are willing and able to purchase at that given price (see
demand).Demand curves are used to estimate behaviors in
competitive markets, and are often combined with
supply curves, often to estimate the
equilibrium price (the price at which all sellers are able to find a willing buyer, also known as
market clearing price) and the equilibrium quantity (the amount of that good or service that will be produced and bought without surplus/excess supply or shortage/excess demand) of that market. Please see the article on
Supply and Demand for more details on how this is done.
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A table or listing showing the number of units of a single type of good (or service) that potential purchasers would offer to buy at each of a number of varying prices during some particular time period. Demand schedules may be drawn up to reflect the behavioral propensities of a single unique individual, household, or firm -- or, more frequently encountered in microeconomic analysis, composite demand schedules for the particular good may be derived by adding up all the demand schedules of the large number of individuals, households or firms that are active or potentially active as purchasers in the market under consideration.
[See also:
demand ,
demand curve ,
law of demand ,
supply ]
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