I understand the theories of supply and demand. I can’t figure out, however, why demand has a negative slope. If demand is lower when prices are higher and quantity is lower, then why is that the highest point in the demand curve? Likewise, if demand is highest when prices are low and quantity is high, why is that the lowest point on the demand curve?
In: Economics
Price is the left, y axis and higher price is upward.
Quantity demanded (q) is bottom, x axis and more demand is to the right.
At a high Price (p), quantity (q) is low, so the curve starts in the upper left of the graph.
As p is lowered, q demanded increases…so the curve drops and “slips’ right., thurs a downward slope.
It is an inverse relationship…high price = lower demand, lower price = higher demand.
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