Define the “law of demand” and draw a Demand Curve labeling all the axes correctly.

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 The Law of Demand states that, all else being equal, the quantity demanded of a good or service is inversely related to its price. As the price of a good rises, the quantity demanded tends to fall, and as the price falls, the quantity demanded tends to rise.

This relationship is typically depicted as a downward-sloping demand curve, which reflects that consumers buy more of a good when its price decreases and less when its price increases.

Demand Curve

The Demand Curve is a graphical representation of the Law of Demand. It is typically downward sloping, showing that as the price of a good or service decreases, the quantity demanded increases.

Here is the structure of the Demand Curve:

  • Y-Axis (Vertical): This axis represents the price of the good or service.
  • X-Axis (Horizontal): This axis represents the quantity demanded of the good or service.



Here is the demand curve, where:

  • The X-axis represents the quantity demanded of the good.
  • The Y-axis represents the price of the good.

As you can see, as the price decreases (moving down the Y-axis), the quantity demanded increases (moving right along the X-axis), consistent with the Law of Demand. The demand curve typically slopes downward from left to right. ​

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