On a demand curve, what is represented on the vertical axis?

On a demand curve, the vertical axis represents price. This aligns with the fundamental representation of the demand curve, which shows the relationship between the price of a good or service and the quantity demanded by consumers at various price levels. As you move up and down the vertical axis, you are observing how changes in price influence the quantity that consumers are willing to purchase.

The demand curve typically slopes downwards from left to right, indicating that as the price falls, the quantity demanded generally increases, and vice versa, which is known as the law of demand. This graphical representation is a crucial concept in understanding consumer behavior and market dynamics. The accuracy in identifying price as the variable plotted on the vertical axis is essential for interpreting demand curves in economic analysis.