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This lesson demonstrates how to derive a demand equation from a demand schedule or curve. Using a survey conducted with students on their candy demand at various prices, the lesson illustrates a linear relationship between price and quantity demanded. While the actual data may not be perfectly linear, the example is adjusted to show how to create a linear demand equation. It emphasizes the law of demand, indicating that lower prices lead to higher quantities demanded, while higher prices result in lower quantities demanded. The lesson focuses on generating an equation to represent this relationship in demand.