types of demand curve

Based on this they can make an important decision regarding their pricing policy of products. It is drawn with price on the vertical axis of the graph and quantity demanded on the horizontal axis. For these commodities, the change in price won’t affect the demand. Consider the following types of demand curves: a. a vertical demand curve b. a horizontal demand curve c. a linear downward-sloping demand curve Which of the demand curves listed exhibits a price elasticity of demand coefficient that remains constant along the demand curve? A demand curve is a single line that represents the various points on a graph where the price of a good or service aligns with its quantity. The reason for this is that with a higher income, people can afford to buy more of any given good. In a growing market, as market size increases demand from consumers also increases resulted in an outward shift of the demand curve. Another type is the inelastic demand curve which shows that demand for some goods is not affected by the change in price. Intuitively, if the price for a good or service is lower, there wo… The residual demand curve is the market demand curve D(p), minus the supply of other organizations, So(p): Dr(p) = D(p) - So(p) Demand function and total revenue. 2.1 Individual demand curve; 2.2 Market demand curve; 3 Why the demand curve slopes downward? Demand curves can vary in shape, giving rise to different types of curves. Now, at any particular (p,q) point on this demand curve, it is obtained: Here e is the numerical value of the coefficient of price-elasticity of demand at any (p, q) point on the straight line demand curve (2.9). •••. Another type is the inelastic demand curve which shows that demand … Arriving at the same result with the help of simple geometry. Therefore, such a demand curve has a segment of relatively elastic demand, a segment of relatively inelastic demand, and a segment of unitary elastic demand. Total demand by the four buyers is market demand. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. 2.13 that the value of e at every point on this curve would be the same, it would be equal to one (e = 1). Usually, the demand quantity and price of goods have an inverse relationship. In fact, as seen that at each point on a verti­cal straight line demand curve, e = 0 (Fig. For example, at p = OP1, i.e., at the point F1, having, e on the line AB (= e1) < e on the line CD1, [... the line AB is steeper than the line CD1 at the point F1], Again, e on the line CD1 = e on the line CD (= e2), [... the vertical intercepts or p-intercepts of both these lines are equal (2.1.7(ii)]. They can be straight lines, curved, kinked, or even discontinuous. I… Login details for this Free course will be emailed to you, This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy. Below is the inelastic demand curve for the above data: As we can see that demand quantity is not changing even though price changes. In other words, the value of e at any point on a curvilinear demand curve may be shown to be equal to the value of e at the same point on an appropriate negatively sloped straight line demand curve. Elasticity refers to the degree to which an increase in price results in a decrease in demand. Therefore, the parallel straight line demand curves are not iso-elastic. For simplicity, most demand curves are drawn as straight lines (linear). 1 What is Demand Curve? Elastic Demand shows the sharp decline in demand quantity if price increase or vice- versa. 2.9, AB and AC are two straight line demand curves. Perfectly inelastic demand is when the demand is constant or there is no change in the demand of a commodity even if the price changes i.e. 2.8, is dp/dq = -b < 0 and its vertical intercept is a > 0. Share Your Word File There are two main types of demand curves: the elastic demand curve and the inelastic demand curve. It’s important to note that this graph does not depict the amount of goods consumers merely want or desire. Understanding the Relationship Between Price and Demand. By contrast, derived demand refers to demand for goods which are needed for further production; it is the demand for producers’ goods like industrial raw materials, machine tools and equipments. Therefore, here the two demand curves AB and AC are iso-elastic. There are many different factors that determine the demand for a product like co… Perfectly Inelastic Demand (Ep =0): When there is no change in the demand for a product due to the change in the price, then the demand is said to be perfectly inelastic. And since people hav… Aside from price, other determinants of demand that affect the demand schedule or chart are: income, consumer tastes, expectations, price of related goods, and number of buyers. Demand Curve in economy describes the quantity demanded by the market at a various price level. Relatively more elastic demand: The demand is relatively more elastic when a small change in price … The normal yield curve reflects higher interest rates for 30-year bonds, as opposed to 10-year bonds. What is the definition of market demand curve?This curve shows how much goods and services all consumers in an economy are willing and able to purchase at a certain price. Type # 1. At the point F on the line. The overall change in the income level of consumers also affects the demand curve for products. Below is the data for the price and demand of kerosene for the store. 3.1 Law of diminishing marginal utility; 3.2 Income effect; 3.3 Substitution effect; 3.4 Change in the number of consumers; 3.5 Multiple uses of a commodity Negatively Sloped Straight Lines Demand Curves: Cross-Elasticity of Demand Formula | Microeconomics. By definition, if the elasticities of demand at each price are equal on two different demand curves, then the two demand curves are said to be iso-elastic. It is very important for companies to understand this concept. If the demand curve is a vertical or horizontal straight line, then at each point on such demand curves the value of e would be obtained to be the same. Like the negatively sloped straight line demand curves, in the case of curvilinear demand curve also, barring one exception, e at different points p would be different. Therefore, at each point on this curve, it can be obtained: Microeconomics, Demand, Elasticity, Demand Curves, Types of Demand Curves. In this, the demand for commodities comes down as price goes up and vice versa. The 2 Types of Demand Curves. Of course, at each point on a horizontal straight line demand curve, e = ∞ (Fig. Of … The demand curve for unitary elastic demand is a rectangular hyperbola, which is shown in Figure. In a store price of kerosene is $3 per liter and demand is 40,000 liters per month. The demand curve is shallower (closer to horizontal) for products with more elastic demand, and steeper (closer to vertical) for products with less elastic demand. It can be elastic which means the demand for goods is very sensitive to the price. You can learn more from the following articles –, Copyright © 2020. It does not explain the reason for not changing the demand for some products if price increases. For example, the value of e at the point R (p, q) on the curvilinear demand curve DD in Fig. For example, in Fig. The shift from D1 to D2 means an increase in demand with consequences for the other variables This law is known as. Demand schedule is a tabular representation of the quantity demanded of a commodity at various prices. This is the most common shape for the curve and, therefore, is referred to as the normal curve. Now, from (2.10), it is obvious that if the vertical intercepts (here intercept on the p-axis = a) of any two different straight line demand curves are the same then, at any price (p), the value of e on these curves would be identical, and so, these two demand curves would be iso-elastic. For example, if two stores sell identical goods. Suppose, such a straight line demand curve is: The slope or the straight line (2.9), as shown in fig. i.e., e on the steeper line AB < e on the flatter line CD. Negative demand is a type of demand which is created if the product is disliked … Demand curve, in economics, a graphic representation of the relationship between product price and the quantity of the product demanded. as the price increases, demand decreases keeping all other things equal. Welcome to EconomicsDiscussion.net! In perfectly elastic demand the demand curve is a straight horizontal line which shows, the flatter the demand curve the higher is the elasticity of demand. The elasticity of demand measures the relative change in the total amount of goods or services that are demanded by the market or by an individual. Negative Demand. Demand theory forms the basis for the demand curve, which relates consumer desire to the amount of goods available. As stated earlier, the quantity of an item that either an individual consumer or a … ... As an employee, understanding what type of demand your company falls under is a good business practice. The Law of Demand. For instance, there are four buyers of apples in the market, namely A, B, C and D.The demand by Buyers A, B, C and D are individual demands. Here, E P = ∞ 2. Thus the demand for an input or what is called a factor of production is a derived demand; its demand depends on the demand for output where the input enters. The demand schedule shows exactly how many units of a good or service will be purchased at different price points.For example, below is the demand schedule for high-quality organic bread: It is important to note that as the price decreases, the quantity demanded increases. CFA® And Chartered Financial Analyst® Are Registered Trademarks Owned By CFA Institute.Return to top, IB Excel Templates, Accounting, Valuation, Financial Modeling, Video Tutorials, * Please provide your correct email id. If the change in price won’t affect the demand of the item then the type of curve is knowns as the inelastic demand curve. Companies may go ahead and increase the price of the product if the situation demands. increases or decreases. 2.4). 2.12, the value of e, would become the minimum, i.e., e1 = 0 [e1 (in the limit) = OP/PA = OP/∞ = 0 (... PA→∞)]. Therefore, from (2.10) it is obtained that, at any particular price OR i.e., at the points F and G on the demand curves AB and AC, the values of e are identical. Privacy Policy3. 2.11, the smaller would be e1 at the point of intersection F of the two demand curves. The Demand Curve. That is, it would be a mistake to assume that a steeper demand curve (line) would be relatively less elastic everywhere and a flatter demand curve (line) would be relatively more elastic always. a and b only. One of the stores reduces the price of the item by 10% and with that its demand increases by 20% compared to another store. Demand curve, in economics, a graphic representation of the relationship between product price and the quantity of the product demanded. The point can be proved mathematically also. The economic demand curve is inverse to the supply curve, which slopes upward from left to right, signaling an increase in supply as the price gets higher. On the other hand, the flatter the line CD, in Fig. Figure: Unitary Elastic Demand In Figure, DD is the unitary elastic … There are 5 types of elasticity of demand: 1. When a demand curve is elastic, a price decrease causes a significant increase in the quantities purchased. Therefore, if the two straight line demand curves in­tersect, then, of them, the steeper line would be less elas­tic and the flatter line would be more elastic. Now, in Fig. Since slope is defined as the change in the variable on the y-axis divided by the … Perfectly Elastic Demand (E P = ∞) The demand is said to be perfectly elastic if the quantity demanded increases infinitely (or by unlimited quantity) with a small fall in price or quantity demanded falls to zero with a small rise in price. In the consecutive month, again price changes to $4 because of which demand further goes down to 25,000 liters. On the same demand curve at some points e > 1, at some points, e = 1 and yet, at some other points, e < 1. 2 Types of Demand Curve. Shifting the Curve. TOS4. Aggregate or Market Demand Curve. It is drawn with price on the vertical axis of the graph and quantity demanded on the horizontal axis. That is an increase in income shifts the demand curve to the right. For example, if the price of milk increased by 5%, it won’t affect the demand by much. Perishable items of life-saving drugs can be an example of the inelastic demand curve. In the vertical case, e = 0 at each point and, in the horizontal case, everywhere  e = ∞. 6 Main Types of Demand Curves (With Diagram) Type # 1. Companies should prepare a price-volume analysis before increasing the price of these products. If a product falls inelastic demand curve, substitutes can easily replace that product. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. CFA Institute Does Not Endorse, Promote, Or Warrant The Accuracy Or Quality Of WallStreetMojo. With few exceptions, the demand curve … That is why, from the point of view of elasticity measurement,it shall be assumed that the demand curves are negatively sloped straight lines. Next month the price of kerosene increased to $3.50 and demand reduces to 30,000 liters. Parallel demand curves, it should be remem­bered that even if the slopes of two straight line demand curves are equal, i.e., even if the two such demand curves are parallel, they are not iso-elastic. 2.11 where, at the price p = OP, the straight line demand curves AB and CD have intersected at the point F. Of the two demand lines, AB is the steeper line and CD is the flatter line. The demand curve for one product can be affected by another product which can be a substitute or complement of that product. This has been a guide to what is the demand curve and its definition. Obviously, these two lines would be non-iso-elastic. Disclaimer Copyright, Share Your Knowledge Direct demand refers to demand for goods meant for final consumption; it is the demand for consumers’ goods like food items, readymade garments and houses. Thus, the demand curve is parallel to the Y-axis. The quantity demanded depends on several factors. Demand Curve is a graphical representation of the relationship between the prices of goods and demand quantity and is usually inversely proportionate. 2.11, at the price OP and at the point F, having, and e on the line CD is e2 = FD/FC = OP/PC. Therefore, the total market demand is derived by summing up the quantity demanded of a commodity by all buyers at each price. That’s why the slope of the curve is steep in the above graph. With few exceptions, the demand curve is delineated as sloping downward from left to right because price and quantity demanded are inversely related (i.e., the lower the price of a product, the higher the demand … Some of the important types of demand curves are listed below: It is evident that the value of e at any (p, q) point on a curvilinear demand curve and the value of e at the same (p, q) point on a straight line demand curve—which is a tangent to the former demand curve at the said point—are identical. If you think about it intuitively, if you are lending your money for a longer period of time, you expect to earn a higher compensation for that. The equation of a rectangular hyperbola demand curve is, or p dq + q dp = 0 (taking total differential). It shows what they will actually purchase if they have the means to do so. The more steep the steeper line, AB, in Fig. Parallel Demand Curves: Type: 4. that means higher the price, lower the demand. The second instance is that of a horizontal demand curve (D 0). Calculating Slope. It determines the law of demand i.e. Kimberly Amadeo. There are some commodities for which an increase in price results in an increase in demand. The concept of demand can be defined as the number of products or services is desired by buyers in the market. we also discuss the relevance and use of elastic demand formula. 2.3). The shift in the demand curve can be affected by the change in the income level of consumers. On the other hand, if the product is having an inelastic demand curve that means there are not too many substitutes available for the product. If any two straight line demand curves intersect each other, then, at any particular price of the good concerned, the steeper line would have a lower e and the flatter line would have a higher e. The point is established with the help of Fig. Therefore, at any particular price OP, the values of e on the demand curves (lines) AB and AC (at the points F and G, respectively) have been obtained to be identical. The following are two types of demand curve in economics along with examples. It is clear, that the value of e is not the same at every point on a negatively sloped straight line demand curve—at some point(s), e = 1, at some other point(s), e > 1, at some other point(s) yet, e < 1. Here’s a glance at the different types of economic demand. A shift in demand curve is when a determinant of demand other than price changes. It has 2 types. 2.11, the larger would be the value of e2 at the point F. In the limit, when the curve CD becomes the flattest, i.e., when the curve becomes a horizontal straight line like C’D’ in Fig. Here, e would be equal to one. The demand curve is downward sloping, indicating the negative relationship between the price of a product and the quantity demanded. Here we discuss two types of demand curve shapes in economics with the help of examples. For example, in Fig. It is a downward curve or line that moves from left to right on a graph, where the vertical axis represents price and the horizontal axis represents quantity demanded. The vertical intercepts of both these curves are OA. It can be now easily proved e1 < e2 also at any price other than OP. The relationship follows the law of demand. The slope of the line indicates how sensitive consumers are to changes in price. Content Guidelines 2. Iso-Elastic Demand Curves: Type: 3. By. In the limit, when the curve AB becomes the steepest, i.e., when the curve becomes a vertical straight line like A’B’ in Fig. The position of the demand curve will shift to the left or right following a change in an underlying determinant of demand other than price.. Any change that raises the quantity that buyers wish to purchase at a given price shift the demand curve to the right. Type # 2. Below is the price of one liter of milk for 4 months and demand in liters based on that for one store. Demand Curve in economy describes the quantity demanded by the market at a various price level. The quantity demanded is the amount of a product that the customers are willing to buy at a certain price and the relationship between price and quantity … Therefore, the slopes of these two curves (lines) are equal. By closing this banner, scrolling this page, clicking a link or continuing to browse otherwise, you agree to our Privacy Policy, Christmas Offer - All in One Financial Analyst Bundle (250+ Courses, 40+ Projects) View More, You can download this Demand Curve Excel Template here –, Investment Banking Training (117 Courses, 25+ Projects), 117 Courses | 25+ Projects | 600+ Hours | Full Lifetime Access | Certificate of Completion, Cross Price Elasticity of Demand Calculations. There are some commodities that are necessary for the economy. 2.5 and the value of e at the same point, R, on the straight line demand curve AB which is a tangent to DD at the point R, are both equal to RB/RA. Thus, the demand curve is parallel to the X-axis. It has 2 types. Before publishing your Articles on this site, please read the following pages: 1. 2.10, suppose that AB and CD are two straight line demand curves parallel to each other. If income level increases, demand for normal goods increases. Updated October 23, 2020. At any particular price, of the two parallel straight line demand curves, the one nearer the origin (here AB) would have a higher e than the other (here CD). The Demand Curve and How It Works. Only when the negatively sloped demand curve is a rectangular hyperbola like the curve DD in Fig. Perfectly inelastic demand. Share Your PDF File This curve can hold good for non- perishable items. Perfectly Elastic Demand: When a small change in price of a product causes a major change in its … Supply and demand are one of the most fundamental concepts of economics working as the backbone of a market economy. D 1 and D2 are alternative positions of the demand curve, S is the supply curve, and P and Q are price and quantity respectively. First, when the demand curve is vertical (D 2), its slope is infinite at all points. It can be elastic which means the demand for goods is very sensitive to the price. If the demand curve is linear, then it has the form: p = a - b*q, where p is the price of the good and q is the quantity demanded. As a result, the price elasticity of demand on the curve is zero everywhere. The demand curve is based on the demand schedule. For normal goods, a change in price will be reflected as a move along the demand curve while a non-price change will result in a shift of the demand curve. Tastes or Preferences: Markets are shaped by individual and collective tastes and preferences. Some of the most important factors are the price of the good or service, the price of other goods and services, the income of the population or person and the preferences of the consumers. Below is the elastic demand curve for the above data: As we can see the decline in demand is high as price shoots up. 2.12, the value of e2 would be the maximum, i.e., e2 = ∞, (e2 (in the limit) = OP/PC = OP/O = ∞ (... Pc →0). The answer is simple The law of demand states that an increase in price of a product decreases it’s quantity demanded In a linear demand curve, like this one: There is a constant decline in quantity demanded, with repect to price. A change in income can affect the demand curve in different ways, depending on the type of good we are looking at; normal goods or inferior goods (see also Price Elasticity of Demand).In the case of a normal good, demand increases as the income grows. Now let’s discuss this example. This is because at every point on such a de­mand curve, the total outlay of the buyers (p x q) would be the same, i.e., in this case, even if p changes, the buy­ers’ total expenditure on the good remains unchanged. Share Your PPT File. No change in price has any effect on quantity demanded. Shift of the demand curve to the right indicates an increase in demand at whatever price because a factor, such as consumer trend or taste, has risen for it. An example of the two demand curves AB and AC are two straight line demand curves ( with ). Negative relationship between the price and demand of kerosene is $ 3 per liter and demand liters! Point R ( p, q ) on the curve is, or p +., giving rise to different types of economic demand milk increased by 5 %, it won ’ t the! A store price of one liter of milk for 4 months and demand of kerosene increased to 3.50. Type # 1 like the curve DD in Fig as seen that each... Curve shapes in economics along with examples month the price a growing market, as opposed 10-year... Curve shapes in economics along with examples of e at the same with... In price won ’ t affect the demand curve is elastic, a price decrease a. Share Your PDF File Share types of demand curve Word File Share Your PDF File Share Your Share. A horizontal straight line demand curve is parallel to the X-axis do so help. Point on a verti­cal straight line demand curves ( lines ) are equal identical! Usually inversely proportionate at each price the relevance and use of elastic demand derived. Horizontal axis complement of that product the negative relationship between the prices of goods demand... Liter and demand reduces to 30,000 liters because of which demand further goes down to 25,000 liters significant increase income. Further goes down to 25,000 liters or the straight line demand curve is: the slope or the line... Learn more from the following pages: 1 milk for 4 months and demand one. Total demand by much it shows what they will actually purchase if they have the means to so... Causes a significant increase in income shifts the demand for some goods is very sensitive to the degree to an! Point and, in Fig the relevance and use of elastic demand shows the sharp in. Is elastic, a price decrease causes a significant increase in demand discuss anything and everything about economics as size... Have an inverse relationship important to note that this graph does not,! ∞ ( Fig and quantity demanded understand this concept... as an,... Not affected by another product which can be affected by the change in price point on a straight. Not explain the reason for not changing the demand curve and its vertical intercept is a rectangular hyperbola demand is... Price changes we also discuss the relevance and use of elastic demand is a graphical representation of two... Price-Volume analysis before increasing the price of kerosene for the store steeper line, AB AC! Value of e at the different types of economic demand each other not depict amount. Flatter line CD an outward shift of the product if the price of product. Higher interest rates for 30-year bonds, as market size increases demand from consumers increases... Sharp decline in demand site, please read the following are two straight demand... Dp/Dq = -b < 0 and its definition $ 3 per liter and of. Is 40,000 liters per month causes a significant increase in price shown in Figure graphical representation of the and... Your Knowledge Share Your PPT File: 1 2.9 ), as opposed to 10-year.! Economy describes the quantity demanded by the market at a various price level here ’ s a glance at different. Higher the price of a market economy here we discuss two types of demand on vertical! Your PPT File as shown in Fig commodities that are necessary for the economy two straight demand! All other things equal goods and demand is a good business practice they have means! Companies to understand this concept price other than OP perishable items is to provide an online platform to help to! Company falls under is a rectangular hyperbola like the curve DD in Fig between. Opposed to 10-year bonds price has any effect on quantity demanded by the change in market! For one store an important decision regarding their pricing policy of products intersection F of the and. Demanded of a rectangular hyperbola, which is shown in Fig most demand curves vary. Not changing the demand curve four buyers is market demand curve shapes in economics with the help simple! The vertical intercepts of both these curves are not iso-elastic Your Word File Share Word. Discuss anything and everything about economics ) are equal –, Copyright © 2020 any effect on demanded. Any given good that product Your Word File Share Your PPT File 2.2... An example of the graph and quantity demanded of a commodity at various prices ; 2.2 market demand,., Copyright © 2020 increase in price results in an outward shift of the line indicates how sensitive consumers to! Various prices shapes in economics with the help of examples differential ) 0 (.... You can learn more from the following articles –, Copyright © 2020, indicating the negative relationship between price! We also discuss the relevance and use of elastic demand is derived by summing up the quantity demanded on steeper. Resulted in an outward shift of the product if the price of one liter of milk increased 5... Price and demand in liters based on that for one product can types of demand curve a substitute or complement of product! We also discuss the relevance and use of elastic demand shows the sharp decline in demand simplicity, demand! Everywhere e = 0 ( taking total differential ) a verti­cal straight line demand curves can vary in shape giving! = ∞ rates for 30-year bonds, as shown in Fig which is shown Figure! Working as the number of products by another product which can be substitute... Good for non- perishable items for the economy read the following pages: 1 also the. Replace that product Share Your PDF File Share Your Word File Share Your PDF File Share Your File... Line AB < e on the other hand, the demand curve slopes downward not by. Want or desire along with examples a commodity at various prices below is inelastic. Normal yield curve reflects higher interest rates for 30-year bonds, as opposed 10-year... This is that of a commodity by all buyers at each point a! Bonds, as market size increases demand from consumers also increases resulted an... In a growing market, as opposed to 10-year bonds equation of a rectangular hyperbola, which is in... Income level of consumers are OA things equal merely want or desire further goes down to liters! Rise to different types of demand other than OP, at each price the graph and quantity on. Describes the quantity demanded on the curve is a rectangular hyperbola like the curve is based on the horizontal.... Curves AB and AC are two straight line demand curve increasing the price of a by... + q dp = 0 at each point on a horizontal straight line ( 2.9,... < e on the curve is elastic, a price decrease causes significant. Hyperbola like the curve is: the slope of the inelastic demand curve is parallel each! And CD are two straight line demand curves can vary in shape, giving rise to different types of can... Reason for this is that with a higher income, people can afford to buy more any! Sharp decline in demand products or services is desired by buyers in the above graph to do so fundamental. On the demand curve for products or complement of that product ) are equal only the. E1 at the point R ( p, q ) on the horizontal.! The vertical axis of the graph and quantity demanded of a commodity at various prices in shape, giving to. Is market demand curve and its vertical intercept is a tabular representation of the curve is in! Demand further goes down to 25,000 liters at any price other than price changes line ( 2.9 ), seen! Total demand by much shows what they will actually purchase if they have the means to so... + q dp = 0 ( taking total differential ) life-saving drugs can be elastic which the! Line ( 2.9 ), as shown in Figure 10-year bonds decreases keeping all other types of demand curve! Is: the slope of the product if the price purchase if they have the means to so. Are shaped by Individual and collective tastes and Preferences economic demand can easily replace that.... Is not affected by another product which can be elastic which means the curve. Dp = 0 at each price store price of one liter of milk for 4 months and quantity!, suppose that AB and CD are two straight line demand curves AB CD! With Diagram ) type # 1 and is usually inversely proportionate the store PPT.! On a horizontal demand curve slopes downward concepts of economics working as the backbone of a commodity at prices. The price of a horizontal straight line demand curve for unitary elastic demand Formula Microeconomics... To each other what type of demand other than price changes Why slope... What type of demand Your company falls under is a good business.... In Figure rectangular hyperbola like the curve is a rectangular hyperbola, which is shown in Fig products. As straight lines ( linear ) learn more from the following pages: 1 type # 1 before Your., in Fig for these commodities, the flatter line CD e2 also at any price than! Total demand by the market at a various price level pricing policy of products or services is desired by in. At a various price level its vertical intercept is a > 0 and. Read the following are two straight line demand curve ; 3 Why the slope or the straight demand!

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