Demand curve
The quantity buyers want at each price, with income, the prices of related goods, expectations and the number of buyers held fixed. A change in any of those shifts the whole curve.
Where you will meet it
Demand curve appears in 2 learning outcomes on the CFA syllabus. A few of them:
- Contrast monopoly, perfect competition and the market structures in between
“A monopolist faces the whole market demand curve and produces where marginal revenue equals marginal cost, then charges what that quantity will bear.”
- Explain how firms set price and quantity in oligopoly and monopolistic competition
“Firms under monopolistic competition and oligopoly face downward-sloping demand, so each maximises profit by producing where marginal revenue equals marginal cost and then charging the price the demand curve allows at that output.”
Practise it
Practise demand curve until it is automatic: questions that explain every wrong option.
Take the free diagnostic →