Question

In the demand graph why is price on the y axis and quantity demanded on the x axis? I was always taught that the dependent variable is graphed on the y axis and the independent on the x axis. Am I wrong in thinking that the quantity demanded depends on the price?

Answer 1

Firstly,I think its more of an economics history issue.The drawing of Economic graphs was popularized by Alfred Marshall who believed price was the dependent variable while the modern study of markets and demand was popularized by Leon Walras whose theory was that quantity was dependent variable.
Secondly, a shift in demand or supply shifts the curve.Therefore,price is the dependent variable in such situations.
Finally,economists make most of their analysis in graphs and most analysis have price as the dependent variable.Thus,for the benefit of consistency,this is maintained in all analysis.

Answer 2

@kinc it is quite simple demand and price are related depends upon the thing that how you look at it from consumers point of view a rise in demand is followed by a rise in price and a fall in demand is followed by a price decline. So here quantity is independent and price is dependent.

if you look at it from price point of view any increase in price results in decline in demand and any decrease in price is followed by the increase in demand. Here price is independent and quantity is dependent.