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    I always think Quantity is the independent variable and Price is the dependent variable (hence, it's on the horizontal axis). If there is a higher demand for something, price will automatically go up. If there is a bad harvest for a certain crop, the quantity supplied will drop which results in higher price.

    The way Introductory Economics classes are taught, Price is the dependent variable (especially during the chapters on demand and supply curve). I'm have a hard time picturing a real life scenario (other than wage increase) that would have price
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    (Original post by reyjusuf)
    I always think Quantity is the independent variable and Price is the dependent variable (hence, it's on the horizontal axis). If there is a higher demand for something, price will automatically go up. If there is a bad harvest for a certain crop, the quantity supplied will drop which results in higher price.

    The way Introductory Economics classes are taught, Price is the dependent variable (especially during the chapters on demand and supply curve). I'm have a hard time picturing a real life scenario (other than wage increase) that would have price
    It all depends how you want to express the demand function. For example, D(Q)= 100-2p. In that demand equation, price is the independent variable (You choose any value for P such that 0<p=<50, and you get positive quantity demanded supplied)

    However I could have the same equation rewritten as P= 50-Q/2
    Here the independent variable is now quantity. The second equation is of course more intuitive.

    You should always have the independent variable in the horizontal axis. In economics the 'convention' is to have quantity almost always on the horizontal axis. However this would be appropiate if we were using the first demand equation as price is the independent variable.


    Hope it helps.
 
 
 
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