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Explain the difference between Demand Curve and Production possibility curve.

Explain the difference between Demand Curve and Production possibility curve.

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Expert Solution

Demand curve talk about the relationship between the price of a certain commodity and quantity demaned at those price.law of demands has inverse relationship between price and quantity demanded of that good.It is mostly used for knowing about how consumer react if there is increase of demand or decrease of demand.Normally it is downward slopping.when we have to estimate behaviour in competitive market then it is used.this is talk about what is realtionship between consumer and price.hence this is talk about consumption

Production possibility curve is a curve which tell us variations in the amount that can be produced if there are two product and both depend upon same finite resource for manufacture.it is used for knowing greatest level of efficiency in a economy when we used best qualified product.it is talk about the relationship when if one product is increases then other is decreases.this is talk about production.

Rahul Sunny answered 2 years ago
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