Search results
May 7, 2024 · The law of demand states that the quantity purchased varies inversely with price, due to diminishing marginal utility. Learn how the law of demand works, what factors affect it, and how it relates to the law of supply.
The law of demand is represented by a graph called the demand curve, with quantity demanded on the x-axis and price on the y-axis. Demand curves are downward sloping by definition of the law of demand. The law of demand also works together with the law of supply to determine the efficient allocation of resources in an economy through the ...
People also ask
What does the law of demand mean?
What is the law of supply and demand?
Which graph represents the law of demand?
What is a graphical representation of the law of demand?
Learn what the law of demand means and how it affects buyers and sellers in the marketplace. Watch a video that explains the concept, shows a graph, and answers some common questions.
- 8 min
- Sal Khan
- Yes! Thank you! I can't tell you how much that price being on the y-axis bugged me, especially when ...The reason dates back to about the end of the 19th century when mathematical economics was really starting to coalesce (it didn't fully until the 1...
- What is cetrus paribus?Cetaris paribus, or, caeteris paribus, is a Latin phrase, literally translated as "with other things the same," or "all other things being equal or...
- What's the difference between quantity and quantity demand?What's the difference between quantity and quantity demand? I think quantity is changed when the entire relationship of the scenario changes oppose...
- Suppose there is very high demand for a product, naturally people are gonna be buying it no matter w...The kind of good that you're talking about is called a price-inelastic good. That means that even as the price of the good changes, the demand for...
- In the real world how is the quantity demanded with a change in price estimated to then plot a deman...Sal was just presenting an example to build off of, in the real world if you where setting your price for your book. You would look at your competi...
- Aren't demand curves always supposed to be concave? Sal uses numbers that disregard price elasticity...The demand schedule indicates that Sal's ebook is very desirable. Hence, even though the demand is dropping as the price is rising, people still wa...
- Does the Demand Curve ever move up and down along the y-axis? If so, what are these factors?It's called a shift... and rather going up and down, the shift is said to go left and right. The curve shifts to the left when the the value of pri...
- Could someone please explain what the difference between Quantity Demanded and Demand is?Quantity Demanded is the number of units of a good that people want to buy at a given price. Demand is the actual function of price that determines...
- Demand vs quantity of demand: if there is a hurricane and everyone scrambles to buy bottled water, d...If there is a hurricane, the entire demand curve will shift to the right, because for any given price, the quantity demanded would increase. Demand...
- In the video, the demand curve sharply curves up, so if you want to make more money then you should ...Great question! First, this question will be addressed in future videos--demand alone tells us little about markets, we need to consider supply as...
Learn the definition and examples of the law of demand, which states that a higher price leads to a lower quantity demanded and vice versa. Explore demand schedules, demand curves, and the difference between demand and quantity demanded.
- I understand that it has become standard practice for the reversal of x and y axises with these kind...No one actually seems to know. Some suggest that it was because early economists thought that quantity was the independent variable, and that every...
- could this relationship between the demand and price be considered an inverse relationship?Yes, this relation between the quantity demanded and the price is an inverse relationship as per the Law of Demand.
- I still don't get what is meant by "the relationship between a range of prices and the quantities de...It's not a proportion, because proportion has a specific meaning. If you draw any line on a graph, that line represents a relationship between the...
- how can economists determine the quantity demanded at each different price and thus make a demand sc...ahaha that's an excellent question! There's not really a way to do that, right? So we have to make some estimates and assumptions. It's important t...
- So demand is the total collection of units available over a range of prices while quantity demanded ...emm... some kind That's my understanding Demand: The whole demand curve curve corresponds to a kind of demand, is a set of relations between the pr...
- I would like to understand total revenue, what is the essence of total revenue, total expenditure. A...Revenue is price x quantity. It's not more complicated than that.
- kindly give me an example to understand the difference between demand and quantity demanded.?Think of jeans--a specific pair of jeans (skinny, dark wash, from Coolest Jeans Inc.). The demand is the relationship between price and quantity de...
Learn the law of demand, which states that the quantity demanded of a good decreases as the price increases. See the graphical representation, the exceptions, and the applications of the law of demand in macroeconomics.
Nov 30, 2021 · Learn the law of demand, which states that the quantity demanded of a good falls as its price rises and vice versa. See examples, exceptions, and related factors affecting demand.
Oct 31, 2021 · The law of demand says that the quantity demanded of a good or service is inversely related to its price. Learn how this economic principle works, see examples, and explore its implications for monetary policy.
