Minggu, 15 Mei 2011

INDIVIDUAL DEMAND CURVE

The figures from table (Will Rice Request List - Family A) in the previous article, can also be used in the form of a graph, which is called the Individual Demand Curve. To illustrate the demand curve, the amount of the purchase (Qd) were measured on the X axis (horizontal), while the price of unity (P) measured on the Y axis (vertical). Each couple [few kilograms of rice: the price of many dollars] is depicted as a point on the graph.
The points gained and then connected to a demand curve dd.


Dd demand curve shows the relationship between the number of (rice), which would be purchased (Qd) per month and the price of rice (per kg) (P). According to international custom price is measured on the vertical axis (Y axis) and the number measured on the horizontal axis (X axis).
Note also that the amount of the purchase (Qd) is always calculated per period of time (per year, per month, per week, etc..). Similarly, the price (P) always mean the price per unit.
Each point of the demand curve shows a combination or a pair of [so many kilograms of rice would be bought per month] and [the price of rice so many dollars per kg]. From the curve can be seen immediately about how many pounds of rice to be purchased by families concerned at various price levels, also at a price that is not listed in the above list Request (= interpolation).

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