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In this video tutorial, the speaker explains the difference between the demand equation and the inverse demand equation. They emphasize the correct labeling of axes in a demand curve graph, with price on the vertical (Y) axis and quantity on the horizontal (X) axis, warning against mislabeling which can lead to losing marks on assignments. The speaker presents a general demand equation, QD = 240 - 5P, where QD represents quantity demanded and P represents price, highlighting the negative coefficient. This sets the stage for understanding the foundational concepts in economics related to demand.