What is typically represented on the vertical axis of a demand curve?

The vertical axis of a demand curve typically represents the price of goods. In economics, a demand curve illustrates the relationship between the price of a product and the quantity of that product that consumers are willing to purchase at various price points.

When plotting this relationship, the price is denoted on the vertical axis, indicating how much consumers must pay for a certain quantity of a good. As the price changes, the quantity demanded generally changes in the opposite direction, which is reflected in the downward slope of the demand curve. Thus, representing price on the vertical axis allows for a clear visualization of this inverse relationship, where higher prices typically lead to lower quantities demanded and vice versa. Understanding this concept is essential for analyzing consumer behavior and market dynamics.