Answer to Question #219873 in Microeconomics for Nitin Bhawani

Question

A and B drive to a petrol pump. A says “I want 20 litres of petrol” and B says “I want Rs. 2,000/- worth of petrol”. What can you say about A and B’s demand curves of petrol? 

Answer 1

Demand curve shows the quantity of products a consumer is ready to buy at each price.

The amount a buyer pays for a unit of the product is known as price. For example Rs 2,000 is the price of units bought by A

The total number of a units that are bought at that price is known as the quantity demanded.

For example 20 litres of petrol are the units (quantity) demanded by B

Increase in price result in decrease in quantity demanded which causes movement along the demand curve .