Anonymous
Anonymous asked in Social ScienceEconomics · 2 months ago

Why do supply-demand curves place the "quantity" on the x-axis and the "price" on the y-axis?

I'm trying to understand this and I don't get it.

From this graph, it seems to show that if demand goes down, then price goes up. My teacher explained it as, if you increase the price, less people will want to buy it. But that's not what the graph shows. It shows if less people want to buy something, then the price increases...?

A graph is like an "if-then" statement, where the "if" is the x-axis and the "then" is the y-axis. If it is changes in prices causing the changes in demand then shouldn't price be on the x-axis? Why would more people wanting to buy something cause its price to go down? You would think if more people wanted to buy something then you could charge more for it and the curves would be reversed. Same with supply. You'd think if you increased the supply then price will go down because it'd be easier to find. It seems like to me either the X and Y axis are reversed, or the direction of the curves are reversed. I don't understand why it is written this way.

Can someone clear this up for me?

Relevance
• Anonymous
2 months ago

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• JuanB
Lv 7
2 months ago

First off your situation is always different.  X may cause y, y may cause X.  The price could go down and more is demanded.  Or the demand could go up and it is upward pressure on the price.  It is a bit irrelevant, and you don't want to change your graph every time on something that is not the keystone of what you are trying to show.

Now we are talking the "D" line here.  Increase in price.  That means you move left and up along the D line.  Yup, that shows price is more, quantity is less.  So it is what the graph shows.

• ?
Lv 6
2 months ago

Because demand and supply curves are invertible functions. Mathematically, it won‘t change the laws.