3 The market for cars:demand demand equation: P Price Q=D(P,Y) of cars The demand curve shows the relationship between quantity D demanded and price, Q other things equal. Quantity of cars CHAPTER 1 The Science of Macroeconomics slide 17 CHAPTER 1 The Science of Macroeconomics slide 17 The market for cars: demand Q Quantity of cars P Price of cars D The demand curve shows the relationship between quantity demanded and price, other things equal. demand equation: ( , ) = d Q D P Y 3