The Phillips curve economic model that shows the short-run inverse relationship between inflation and unemployment. Learn how it's useful to investors.

The graph of an inverse demand curve is derived from the formula used to determine the demand curve for a product. Advertisement. Article continues below this ad. How to Use an Inverted Demand Curve.

Firstly we must note that straight-line graphs cannot show inverse relationships, so we are looking for curves. This graph shows an inverse proportional relationship, but how do we know?

An inverse curve means that the graph line starts at the top left and ends at the bottom right. This is a situation that is particularly visible in times of economic hardship. News .