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
Unless I’m misunderstanding your question, it’s just a function of how the axes on the chart are defined. The x-axis (quantity demanded) increases from left to right and the y-axis (price) increases as you move up. So if you plot the two cases you describe (low demand + high price and high demand + low price) you get a downward sloping line.
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