The Demand Curve

The demand curve is a graph used by business owners and economists to determine relative levels of demand. Because pricing will affect levels of demand, the demand curve demonstrates how much demand can be predicted with a given price. Below is a demand schedule. By looking at the demand schedule it is difficult to develop a basic theme about how demand is affected by price. When we graph the data however, and create a demand curve, we can ascertain a better understanding of the overall theme on how demand is affected by price changes.