vitÂ·riÂ·fy (vÄ­tâ²rÉ-fÄ«â²) v. vitÂ·riÂ·fied, vitÂ·riÂ·fyÂ·ing, vitÂ·riÂ·fies v.tr. To change or make into glass or a glassy substance, especially through heat fusion. v.intr. To become vitreous.
We draw a demand curve to show the relationship between the price of the good and the quantity that consumers are willing to buy. For example, suppose people are willing to buy 20 pounds of strawberries at a price of $2, but are willing to buy 30 pounds if the price falls to $1.
Extensive study in economics has considered this issue, and theories exist to explain the relationship between taxes and the demand curve. Understanding the basics of the effect of tax on the demand curve is important both for business and those interested in economic policy. Basics of the Demand Curve In economics, the demand curve is a graphical approximation of consumers' buying interest. It is often used hypothetically to help explain and visualize economic theories and phenomena. The points along the demand curve represent price points at which given a quantity of consumers intend to make a purchase. For most products, economists generally assume that the demand curve is decliningâas price increases, consumption quantities will decrease.