Final answer:
A demand curve shows the relationship between the price of a good and the quantity demanded.
Step-by-step explanation:
A demand curve shows the relationship between the price of a good and the quantity of that good people are willing and able to buy. It is a graphical representation that illustrates how the demand for a product changes as its price varies. The demand curve slopes downwards, indicating that as price increases, the quantity demanded decreases, assuming all other factors remain constant.
The demand curve is an important concept in economics. It helps to understand consumer behavior and the relationship between price and demand. For example, if the price of a high-end smartphone increases, fewer people will be willing to buy it. On the other hand, if the price decreases, more people will be willing to purchase it.
A demand curve shows the relationship between the price of a good and the quantity of that good people are willing and able to buy. The demand curve relies on the ceteris paribus assumption, which means all other economic factors are held constant. This concept is central to understanding how economic events lead to changes in prices and quantities in a market.