Answer to Question #158281 in Microeconomics for TARIQUE

Question

Enunciate theoretical as well as diagramatical equation of demand?

Answer 1

Demand refers to quantity of goods that the buyers are willing to purchase at various prices during a given period. The demand equition Is a mathematical expression of the relationship between quantity of the goods demanded and the ability of the consumers to buy the goods.

$Demand function$

$Q=a-bp$

Whereby Q=linear demand curve

a=factors influencing demand besides price

b=slope

P=Price

The relationship between quantity demanded and price is called the demand curve. The curve is used to compare competitive markets .