Answer to Question #230096 in Macroeconomics for Ross

Question

State the different way in which the demand function can be presented

Answer 1

Different ways in which demand function can be represented:

i) Linear demand function.

The demand function slope does not change, it remains constant all through the entire length resulting in a line. It is an algebraic formula for calculating demand curves without having to draw a demand function graph.

ii) Non-linear demand curve.

This one is the opposite of linear demand function, the slope keeps changing resulting in a curve and not a line. Change in price cause change in demand.