To explain the relationship, here is a small diagram which starts with a simple demand curve. ... The curve simply shows how the demand for a particular good or service can change really easily due to a change in price As you can see with the curve, one assumption would say that the demand is "Price-elastic" This shows that the consumer is in a position to change the demand in response to any changes within the price. ... A demand curve also shows and expresses the total relationship between price and demand in the economy for the good/service that is being considered. ... This is u...

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