How to build a demand graph

Demand is an element of the market mechanism. It is determined by the solvency of the buyer who needs this type of product. The image is made in the form of a curve graph that shows how many products and at what price people are willing to buy. And how to build a demand schedule?

You will need

• - album sheet;

• - a pencil;

• - ruler;

• - eraser.

Instruction manual

1

Gather the data needed to build a demand graph. This is the price of a particular product and the number of people who are willing to pay for it this cost.

2

Draw two straight lines - vertical and horizontal, coming out of one point located in the lower left corner of the sheet. Fasten the free ends with arrows that indicate the direction when continuing straight lines. In the upper part of the vertical line write "price" - the designation of numbers located vertically. On the far right side of the horizontal line write “quantity”, i.e. designation of numbers located horizontally and showing the number of consumers.

3

Divide the straight axis of the graph in equal short segments. On each "step" of the vertical, put down the price of the goods, starting with the minimum located at the bottom and ending with the maximum located at the top. On the horizontal strokes, arrange the numbers based on the analysis of the data. If the number of consumers is measured in units, for example, with expensive goods, then put the numbers in order. If there are dozens, hundreds, etc., then divide the entire number of consumers into equal parts, each of which will correspond to one segment.

4

Mark the set of points on the chart. Each of the points should be at the intersection of two conventionally drawn lines that go out of the axes of the graph and indicate the necessary data.

5

Draw a curve line through the formed points - this will be the demand curve, which will clearly demonstrate the dependence of the purchase volume on the price. Those. the lower the price, the more consumers buy. Please note that at the same price there may be several demand curves. This will depend on the need to purchase this product, as well as whether there are replacement products similar to this one.