What is the equation of demand?
In its standard form a linear demand equation is Q = a - bP. That is, quantity demanded is a function of price. The inverse demand equation, or price equation, treats price as a function f of quantity demanded: P = f(Q). To compute the inverse demand equation, simply solve for P from the demand equation.
Related Posts:
- What is demand and supply with examples? - Examples of the Supply and Demand Concept... (Read More)
- Is market a demand? - Definition: Market demand describes the demand for... (Read More)
- What factors affect the demand curve? - Factors which can shift the demand curveIncome.... (Read More)
- What is demand rise? - The demand for a commodity may change... (Read More)