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The Mathematics of Demand Functions
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Demand Functions In Different Forms Graphs of quantity demanded against price
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Demand Functions In Different Forms Graphs of quantity demanded against price They need not be straight lines
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Demand Functions In Different Forms Tables
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Demand Functions In Different Forms Mathematical equations
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Demand Functions In Different Forms Mathematical equations Linear or Non Linear
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Indirect demand functions Gives price as a function of quantity, not the other way around. We can always restate indirect demand functions as direct demand functions and vice versa.
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A Graphical Interpretation Knowing price we know quantity demanded.
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A Graphical Interpretation It also works the other way.
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An Example Q = 100 – 2P
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An Example Q = 100 – 2P 2P + Q = 100 – 2P +2P
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An Example Q = 100 – 2P 2P + Q = 100 – 2P +2P 2P + Q = 100
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An Example 2P + Q = 100 2P + Q – Q = 100 – Q 2P = 100 – Q
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An Example 2P = 100 – Q (1/2)[2P] = (1/2)[100-Q] P = 50 – (1/2)Q
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A Second Example P = 50 – (1/2)Q
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A Second Example P = 50 – (1/2)Q 2P = 2[50-(1/2)Q] 2P = 100 – Q
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A Second Example 2P = 100 – Q Q + 2P = 100 – Q + Q Q + 2P = 100
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A Second Example Q + 2P = 100 – Q + Q Q + 2P = 100 Q + 2P – 2P = 100 –2P Q = 100 – 2P
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Some Assignments P = 12 – 3Q Q = 100 – 10P
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Some Assignments P = 12 – 3Q Q = 100 – 10P
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