2006-10-04 19:20:51 · 4 answers · asked by vaibhav_munjal22 1 in Education & Reference ➔ Higher Education (University +)
no
2006-10-04 19:22:57 · answer #1 · answered by vani3624 3 · 0⤊ 0⤋
The demand curve represents a simple relationship. It tries to demonstrate how many items of a product or service a consumer would LIKE to purchase at different prices. There are two major assumptions made with this simple model.
* Consumers are not only willing but ABLE to buy the item - this is called 'effective demand.'
* It is an expression of preferences and includes a whole range of judgements about 'value'.
At its simplest the relationship suggests that people are willing consume more of a product at lower prices than they are at higher prices. This is described as a negative relationship between demand and price - as one rises the other falls and vice versa. This is fairly logical and should not cause too many difficulties but remember it is an expression of how much of a product someone would LIKE to purchase, not what they ACTUALLY buy.
2006-10-05 02:34:04 · answer #2 · answered by Ibrahim Faisal 2 · 0⤊ 0⤋
Yes, when I was in AP Econ last year, I always remembered it because Demand goes Down, they both start with D. And, as demand increases, the prices decrease. Or, if something is more expensive, less people will want it.
2006-10-05 02:29:26 · answer #3 · answered by sprinkles02 2 · 0⤊ 0⤋
yes, the price goes up and the demand for that product goes down. its an inverse relationship.
2006-10-05 02:32:36 · answer #4 · answered by Sparky 1 · 0⤊ 0⤋