Demand Curve


The concept explains the important economic concept of the demand curve. It describes various strengths and weakness for use in business and provides useful implementation advice and real case studies to illustrate its application.

Technique Overview

Demand Curve

Demand Curve Definition

The demand curve is a graph that shows the relationship between the price of a good and the quantity demanded. This graph only represents changes in quantities when prices change, provided that all the other relevant variables affecting demand are held constant (ceteris paribus). Changes in these variables, other than price, cause a shift in the demand curve. The demand curve slopes downward because of the 'law of demand': lower prices mean a greater quantity demanded. When all individual curves are aggregated, a market demand curve is obtained (Mankiw, 2009).

Demand Curve Description *

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Business Evidence

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Examples of Demand Curve *

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Business Application

Demand Curve Implementation *

Success Factors of Demand Curve *

Measures of Demand Curve *

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Professional Tools

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Further Reading

Demand Curve Web Resources *

Demand Curve Print Resources *

Demand Curve References (4 of up to 20) *

  • Barnett, F.W. (1988), Four Steps to Forecast Total Market Demand, Harvard Business Review, July.
  • Baumol, W., Blinder, A. (2012), Macroeconomics: Principles & Policy, Cengage Learning.
  • Dignan, L. (2011), Price may hinder initial demand for Ultrabook, Sep 6th, available at: http://news.cnet.com/8301-1001_3-20101972-92/price-may-hinder-initial-demand-for-ultrabook/
  • International Business Times (2011), Netflix Fiasco: From Pretty Simple to Simply Puzzling, Sep 20th, available at: http://www.ibtimes.com/articles/216752/20110920/netflix-reed-hastings-telecom-and-media-dvd-subscription-business-model-qwikster.htm

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