Finding the demand curve
A demand curve in economics is a graph that depicts the relationship between the price of a specific good and the amount of that good needed at that price. Individual demand curves are used for price-volume interactions between individual consumers, while market-wide demand curves are utilized for all consumers (a market demand curve).
It is generally accepted that the demand curve declines because of the law of demand. For the majority of things, demand declines as price rises. This law does not apply in several peculiar circumstances. These include speculative bubbles, Veblen goods, and Giffen goods, and when prices rise, purchasers are drawn to the products.
Demand curves are used in combination with supply curves to establish an equilibrium price. At this ideal point, both sellers and buyers have achieved a mutual understanding of how valuable a good or service really is, which allows us to produce just enough to satisfy the demand without shortages...
