In this article we will discuss about the derivation of individual demand curve with the help of a diagram. A demand curve has been defined as a curve that shows a relationship between the quantity-demanded of a commodity and its price assuming income, the tastes and preferences of the consumer and the prices of all other goods constant. To draw [...]
The slope of a line is a measure of its steepness. It is given by the increase in the vertical coordinates divided by the increase in the horizontal coordinates. It simply indicates how much the line rises per unit move to the right or how much it goes down as we move to the right. The former (an upward rising [...]
Demand Curve of an Individual Firm under different Market Conditions! The demand schedule (or the sales schedule) indicates how much output an individual firm can sell at each possible price. In other words, it shows the relation of the price it charges to the quantity it can sell. The nature of elasticity of such demand schedule becomes different under different [...]