What does the demand curve illustrate under the law of demand?

The demand curve reflects the principle of the law of demand, which states that, all else being equal, as the price of a good or service decreases, the quantity demanded increases. This relationship is illustrated by the downward slope of the demand curve. When prices fall, more consumers are willing to purchase the good, leading to an increase in overall demand.

This negative correlation between price and quantity demanded is a fundamental concept in economics, as it highlights consumer behavior and market dynamics. The downward slope of the demand curve ultimately helps visualize how changes in price influence purchasing decisions, showcasing a key aspect of consumer demand in the marketplace.