Realized 1031 Glossary of Terms

Demand Curve

Written by The Realized Team | Jun 27, 2022 12:00:00 PM

The demand curve is plotted on a graph with the y-axis representing price and the x-axis representing quantity. The curve goes from the top left to the bottom right. The demand curve does not move when only price and quantity are changing. For example, when prices rise, quantity drops, resulting in less demand. Additionally, the demand curve remains static. As prices decrease, quantity increases, resulting in more demand. The demand curve also remains static in this case.

Factors that can move the demand curve include changes in wages, an increase in the population, or a change in consumer preferences. If wages drop, consumers cannot purchase as much. In this case, the demand curve shifts to the left. The same happens if consumer preferences change, and there is less demand for a specific product. The curve will shift right with a population increase or an increase in wages.