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Law of Demand Curve/Diagram:
Demand curve is a graphical representation of the demand schedule. According to Lipsey:” this curve, which shows the relation between the price of a commodity and the amount of that commodity the consumer wishes to purchase is called demand curve”.
Figure: Demand Curve
In the figure 3.1 the quantity demanded of shirts in plotted on horizontal axis and price is measured on vertical axis. Each price quantity combination is plotted as a point on this graph. If we join the price quantity points we get the individual demand curve for shirts. The demand price slopes downward from left to right. It has a negative slope showing that the two variables such as price and quantity work in opposite direction. When the price of a good rises, the quantity demanded decreases and when its price decrease, quantity demanded increase, ceteris paribus.