Final answer:
The demand curve shows the relationship between the price of a product and the quantity demanded, assuming no other economic factors change, which is known as ceteris paribus. A higher price usually means a lower quantity demanded, as illustrated by the law of demand.
Step-by-step explanation:
The demand curve shows the relationship between the price of a product and the quantity of the product that consumers are willing to purchase, given all other factors are held constant. This concept adheres to the law of demand, which states that a higher price typically leads to a lower quantity demanded. The relationship presented in the demand curve is constructed under the assumption of ceteris paribus, which is Latin for 'other things being equal.' This means that the curve reflects the relationship between price and quantity demanded without any external economic factors changing.
A demand schedule is a tabular representation of this relationship and it lists the quantity demanded at various prices. Meanwhile, the curve itself is a graphical depiction that plots price on the vertical axis and quantity on the horizontal axis. The price elasticity of demand is a related concept that measures how responsive the quantity demanded is to a change in price.