Question

Why is AR curve also known as the demand curve?

Answer 1

Average revenue curve is often called the demand curve due to its representation of the product's demand in the market. The average revenue is also the curve which represents the price of a product. Average revenue is nothing but Total Revenue divided by Quantity and total Revenue is nothing but Price multiplied by quantity of output. Usually price of a product is represented on the y-axis and Quantity on the X-axis. 
Each point on the curve represents the price of the product in the market. Price determines the demand for a product, hence Average revenue curve is also demand curve.
Assuming it is a perfect competitive market.

Answer 2

AR curve also known as the demand curve

Explanation:

Average revenue curve is often called the demand curve due to its representation of the product's demand in the market.

The average revenue is also the curve which represents the price of a product.

Average revenue is nothing but Total Revenue divided by Quantity and total Revenue is nothing but Price multiplied by quantity of output. Usually price of a product is represented on the y-axis and Quantity on the X-axis.

The demand curve equals the average revenue curve in all cases. This makes sense if you think about what average revenue is, it's just the total revenue divided by quantity sold, and the price and quantity are both taken from the demand curve.

For example, if the demand curve shows that 100 units will be demanded when the price is 10, then total revenue will be 100x10 = 1000. This means average revenue when the quantity is total revenue divided by quantity sold = 1000/100 = 10, the same as the price on the demand curve.

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