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The demand / supply graph is designed to have supply on the vertical axis (Y) and demand on the horizontal (X).
Thus you will have a higher supply = lower demand, or lower supply = high demand.
Wiki User
∙ 16y ago
Wiki User
∙ 13y agoThe demand curve slopes downward from left to write. And the reason it does that is because as price decreases demand increases, and as price increases demand decreasesWell this is quite simple. If you observe a demand curve you will notice that the x axis is labelled Quantity and the y axis Price. Therefore, in theory if you had 100$ available and one apple would cost 100$ you would only buy 1 apple therefore if you go along the demand curve at the top you can only have a small quantity at a higher price. Therefore let us say if the price of the apple would decrease to 5$ you would be able to buy 20. As you can see on the demand curve the lower the price gets the higher the demand goes.
This does not usually occur the other way as you would not buy more apples at a higher price now would you ?
Wiki User
∙ 9y agoby law of diminishing marginal utility
Wiki User
∙ 11y agoyo black.
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Is an increase in demand represented by a movement up the demand curve?
An increase in demand is represented by a shift of the demand curve to the right; not a movement along the demand curve. An increase in the quantity demanded would be a movement down the demand curve.
In which direction does the Supply curve slopes to the left or right?
Supply curves slope up and to the right. As the price goes up, suppliers are willing to produce MORE product. Conversely, as the price goes up, consumers demand LESS of a good or service. As a result, the demand curve slops down and to the right.
Why does demand curve slope downward from left to right?
We have seen already that demand curves (price Demand) slope downwards from left to right. Since demand curve is only a geometrical representation of the law of demand with 'quantity' on the X axis, and 'price' on the Y axis, the shape of the demand curve has to be necessarily of one sloping downwards showing that more is demanded at a lower price. The question why does the demand curve slope downwards is an indirect way of asking why does the law of demand operate. What are the reasons behind the operation of law of demand? why do people demand more if price comes down? So it is better to discuss the reasons behind the law of demand or the economics of law of demand in order to understand the question under discussion.
Why does the demand curve slops downwards?
Because in Economics, the demand curve always goes down. It's always changing because or suppy and demand.
What will a monopolist firm do if it's demand curve lies below its average variable cost curve?
It will shut down.
Is an increase in demand represented by a movement up the demand curve?
An increase in demand is represented by a shift of the demand curve to the right; not a movement along the demand curve. An increase in the quantity demanded would be a movement down the demand curve.
In which direction does the Supply curve slopes to the left or right?
Supply curves slope up and to the right. As the price goes up, suppliers are willing to produce MORE product. Conversely, as the price goes up, consumers demand LESS of a good or service. As a result, the demand curve slops down and to the right.
What is negaitve slope?
You're familiar with the xy-plane. A line with negative slope is one that goes down toward the right. A curve has a negative slope at a point if the tangent line to the curve at that point has a negative slope.
Why does demand curve slope downward from left to right?
We have seen already that demand curves (price Demand) slope downwards from left to right. Since demand curve is only a geometrical representation of the law of demand with 'quantity' on the X axis, and 'price' on the Y axis, the shape of the demand curve has to be necessarily of one sloping downwards showing that more is demanded at a lower price. The question why does the demand curve slope downwards is an indirect way of asking why does the law of demand operate. What are the reasons behind the operation of law of demand? why do people demand more if price comes down? So it is better to discuss the reasons behind the law of demand or the economics of law of demand in order to understand the question under discussion.
Why does the demand curve slops downwards?
Because in Economics, the demand curve always goes down. It's always changing because or suppy and demand.
What will a monopolist firm do if it's demand curve lies below its average variable cost curve?
It will shut down.
When the y values decrease and the x values increase how is that shown on a graph?
This has a negative slope (it slopes 'down' as you move from left to right).
The law of diminishing marginal utility explains why A supply curves slope upward B demand curves slope downward C drug addicts can never get enough D. people will only consume their favo?
B. Demand curve slopes downward. If apple #3 doesn't give you as much satisfaction (or utility) as apple #2, your demand for apples goes down before you hit apple #4.
What happens to marginal utility when you move down on the demand curve?
as we move down on the demand curve, marginal utility of a commodity starts declining bcoz of the law of diminishing marginal utility.after getting full satisfaction from a commodity both demand and marginal utility of that commodity decreases.
Show a demand curve illustrating price inelastic demand and explain how the curve relates to the definition of price elasticity of demand?
See the related link. A perfectly inelastic demand would be a line straight up and down. That would show that demand is constant regardless of the price.
What does A perfect elastic supply curve look like?
Demand and cost are inversely related, i.e., as the cost goes up, the demand goes down, and as cost goes down, demand goes up. So any two cost-demand curves are are inversely related constitute a perfect elastic supply curve.
Why is it difficult to judge elasticity of demand or supply if you are merely observing the appearance of a demand or supply curve on a graph?
Because it is basically curved shape, therefore, there are points/areas on the curve where the demand or supply will be elastic and on some other parts be inelastic. At the top of the curve, demand/supply tends to be inelastic and at the bottom of the curve, it tends to be elastic. Obviously, the more you go up the more we reach the perfectly inelastic demand/supply and the further you go down the curve, the more you reach the perfectly elastic demand/supply
