Begin your chart by drawing the vertical and horizontal axes, forming an L-shaped diagram. Label the vertical axis "P" for price and the horizontal axis "Q" for quantity demanded.
Review the demand schedule, if applicable. Your class instructor may provide you with a demand schedule which illustrates the quantity demanded for a good at various price levels. In most cases, the quantity demanded increases as the price declines. For example, a demand schedule for beef may show that a hypothetical consumer buys 12 lbs. if beef is free, 10 lbs. at $1 per pound, 8 lbs. at $2 per pound and only 5 lbs. at $3 per pound. The values in the demand schedule provide the data for your chart.
Plot the individual points in the demand schedule in your demand chart, using the values in the vertical and horizontal axes to locate the points.
Draw a line that connects the individual points in your demand chart, starting at the point at which the price is the highest. The line in your demand should slope downward to the right, illustrating an increase in quantity demanded, or Q, for every drop in price, or P.