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Question
Demand curve and Supply curve.
Solution
| Point | Demand Curve | Supply Curve |
| 1. Meaning | Demand curve is the graphical representation of a given demand schedule. It shows variations in the quantity demanded in response to change in price. | Supply curve is the graphical representation of a given en supple schedule. It shows the variations in the quantity supplied in response to change in price. |
| 2. Price Relationship | There exist an inverse relationship between the quantity demanded and the price of a given commodity. | There exist an direct relationship between the quantity supplied and the price of a given commodity |
| 3. Slope of the curve | The demand curve slopes downwards form the left to right. It has negative slope. | The supply curve slopes upwards from left to right. It has positive slope. |
| 4. Behaviour Relationship | The demand curve indicates buyers’ behaviour in response to change in price. | The supply curve indicates sellers’ behaviour in response to change in price. |
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