Question

Law of Demand

Price of
$1.00
$1.50
$2.00
$2.50
$3.00
$4.00

Quantity demanded
100
75
60
50
25
10

1. Graph the demand schedule to make a demand curve. Label your Price, Quantity and Demand curve.

Answer 1

To graph a demand curve based on a demand schedule, draw labeled axes for price and quantity, plot the given data points, connect them with a curve, and label the curve as the 'Demand Curve', illustrating the law of demand.

Step-by-step explanation:

To graph the demand schedule and create a demand curve, follow these steps: On a sheet of graph paper, draw a horizontal axis (x-axis) and label it 'Quantity Demanded'. Draw a vertical axis (y-axis) and label it 'Price'. Plot the points given in the demand schedule on the graph. For instance, the point (100, $1.00) means when the price is $1.00, the quantity demanded is 100. Proceed to plot (75, $1.50), (60, $2.00), (50, $2.50), (25, $3.00), and (10, $4.00). Connect the plotted points with a smooth curve.

This curve should slope downwards from left to right, reflecting the law of demand, which indicates that an increase in price leads to a decrease in quantity demanded. Label this curve as the 'Demand Curve' to distinguish it from any other lines or data that may appear on your graph. Graphing the demand schedule in this way visualizes the inverse relationship between price and quantity demanded that is fundamental to the law of demand.