The Mathematics of demand functions презентация

The Mathematics of Demand Functions
Demand Functions In
Different Forms
Graphs of quantity demanded against price
D
P
Q

The Mathematics of Demand Functions
Demand Functions In
Different Forms
Graphs of quantity demanded against price
They need not be straight lines
D
P
Q

The Mathematics of Demand Functions
Demand Functions In
Different Forms
Tables

The Mathematics of Demand Functions
Demand Functions In
Different Forms
Mathematical equations
Q=100-2P

The Mathematics of Demand Functions
Demand Functions In
Different Forms
Mathematical equations
Linear or Non Linear
Q=100-2P
Q=10P-2

The Mathematics of Demand Functions
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.

The Mathematics of Demand Functions
A Graphical Interpretation
Knowing price we know quantity demanded.
D
P
Q

The Mathematics of Demand Functions
A Graphical Interpretation
It also works the other way.
D
P
Q

The Mathematics of Demand Functions
Ditto with Tables

The Mathematics of Demand Functions
An Example
Q = 100 – 2P

The Mathematics of Demand Functions
An Example
Q = 100 – 2P
2P + Q = 100 – 2P +2P

The Mathematics of Demand Functions
An Example
Q = 100 – 2P
2P + Q = 100 – 2P +2P
2P + Q = 100

The Mathematics of Demand Functions
An Example
2P + Q = 100
2P + Q – Q = 100 – Q
2P = 100 – Q

The Mathematics of Demand Functions
An Example
2P = 100 – Q
(1/2)[2P] = (1/2)[100-Q]
P = 50 – (1/2)Q

The Mathematics of Demand Functions
A Second Example
P = 50 – (1/2)Q

The Mathematics of Demand Functions
A Second Example
P = 50 – (1/2)Q
2P = 2[50-(1/2)Q]
2P = 100 – Q

The Mathematics of Demand Functions
A Second Example
2P = 100 – Q
Q + 2P = 100 – Q + Q
Q + 2P = 100

The Mathematics of Demand Functions
A Second Example
Q + 2P = 100 – Q + Q
Q + 2P = 100
Q + 2P – 2P = 100 –2P
Q = 100 – 2P

The Mathematics of Demand Functions
Some Assignments
P = 12 – 3Q
Q = 100 – 10P

The Mathematics of Demand Functions
Some Assignments
P = 12 – 3Q
Q = 100 – 10P
Q = 4 – (1/3)P
P = 10 – 0.1Q