demand curve
Price-quantity inverse graph
A demand curve is a graph showing the relationship between a product's price and the quantity consumers will buy at each price point.
Typically slopes downward—as price rises, demand falls.
Economists use demand curves to analyze markets, predict consumer behavior, and understand how price changes affect sales: The demand curve shifted right as the product gained popularity.
equilibrium
Point where paths meet
- surplusAmount exceeding requirement
- shortageDeficient supply of necessities
- convergenceProcess of approaching sameness
- stable equilibriumSelf-correcting balanced state
graphical
Ground that descends
- right shiftRight-side capitalization key
- linearArranged in straight succession
- nonlinearNot in sequence
- interceptSeize en route
inverse relationship · plotting · coordinates · kinked · graphing
elasticity
Demand's reaction to cost
- steepnessAngle of incline
- flatnessAbsence of slope
- horizontalParallel to the horizon
- verticalAt right angles groundward
determinants
What customers choose to buy
- expectationsBeliefs about future outcomes
- populationAll inhabitants combined
- tastesSenses flavor or preferences
- demographicsStatistical population characteristics
intersection
Point where paths meet
- surplusAmount exceeding requirement
- shortageDeficient supply of necessities
- convergenceProcess of approaching sameness
downward slope
Ground that descends
- right shiftRight-side capitalization key
- linearArranged in straight succession
- nonlinearNot in sequence
inverse relationship · intercept · plotting · coordinates · kinked · graphing
price sensitivity
Demand's reaction to cost
- steepnessAngle of incline
- flatnessAbsence of slope
- horizontalParallel to the horizon
consumer preferences
What customers choose to buy
- expectationsBeliefs about future outcomes
- populationAll inhabitants combined
- tastesSenses flavor or preferences
- economicsinflation, GDP, GNP, gross domestic product, gross national product
- microeconomicssupply, price, market, elasticity, equilibrium
- economic chartsbudget line, marginal cost, average cost, growth chart, trade balance
- long tailniche markets, niche products, rare items, power law
- statistical curvest-distribution, ogive, sigmoid
- macroeconomicsGDP, GNP, gross domestic product, gross national product, inflation rate