What is the difference between a demand curve and an inverse demand curve?
Demand is the relationship between the price of a good or service and the quantity demand. This relationship is typically negative meaning that as one increases, the other decreases and vice versa.
Answer and Explanation:
The demand curve is graphed with quantity as the independent variable (on the y-axis) and price as the dependent variable (on the x-axis). With the demand curve, it is assumed that price impacts quantity. The inverse demand curve, on the other hand, has the price as the dependent variable and quantity as the independent variable, which assumes quantity influences price. In economics, the inverse demand curve is typically used when graphing supply and demand.
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Learn more about this topic:
from Introduction to Macroeconomics: Help and ReviewChapter 7 / Lesson 11