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How to Calculate Derivation of Individual Demand Curve for a Product in Economics

Derivation of demand is the point at which the demand for a product changes with its price. To see how the derivation of demand works, you need to refer to a graph. The graph shows how changes in price for a product affect its demand. To do this you will need to gather information for a product and then track price changes over time.

Instructions

- 1
  Write ̶0;Price,̶1; ̶0;Population 1,̶1; on a piece of paper. List the prices in the ̶0;Price̶1; column and the demand in the ̶0;Population 1" column from low to high in equal increments. For example, use ̶0;$2.00̶1; down to ̶0;$1.00̶1; in $0.25 cent incriminates for the price and ̶0;20,̶1; ̶0;50,̶1; ̶0;80,̶1; ̶0;100̶1; and ̶0;125" for the demand.
- 2
  Draw a graph that has a vertical and horizontal line on a piece of paper. Label the horizontal line as ̶0;X̶1; and the vertical line as ̶0;Y.̶1; Label the horizontal line ̶0;Amount̶1; and the vertical line ̶0;Price.̶1;
- 3
  Make six marks along the horizontal line. Label them with the demand values from Step 1 -- for example, ̶0;20,̶1; ̶0;50,̶1; ̶0;80,̶1; ̶0;100,̶1; ̶0;125̶1; and ̶0;135." Make four marks up the vertical line and label them with the corresponding prices -- for example, ̶0;$1.00,̶1; ̶0;$1.50,̶1; ̶0;$2.00̶1; and ̶0;$2.50."
- 4
  Draw a dot on the graph where the price intersects the demand. Draw a line through all of the dots.

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