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What is market demand function? and individual demand function?
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What is market demand function? and individual demand function?
Market Demand Function
The market demand function refers to the total quantity of a product or service that consumers are willing and able to purchase at a given price and time. It is the sum of all individual demand functions of the consumers in the market. In other words, it represents the demand for a product or service in a particular market.
Factors affecting the Market Demand Function
- Price of the product or service
- Income of the consumers
- Price of related goods
- Tastes and preferences of the consumers
- Population size and demographic characteristics
- Market competition
- Seasonal factors
Formula for Market Demand Function
The formula for market demand function is:
Q = f(P, Y, Pr, T, Pop, C, S)
where Q is the total quantity demanded, P is the price of the product or service, Y is the income of the consumers, Pr is the price of related goods, T is the tastes and preferences of the consumers, Pop is the population size and demographic characteristics, C is the market competition, and S is the seasonal factors.
Individual Demand Function
The individual demand function refers to the quantity of a product or service that a single consumer is willing and able to purchase at a given price and time. It is based on the consumer's tastes and preferences, income, and the price of the product or service.
Factors affecting the Individual Demand Function
- Price of the product or service
- Income of the consumer
- Tastes and preferences of the consumer
- Price of related goods
Formula for Individual Demand Function
The formula for individual demand function is:
Q = f(P, Y, T, Pr)
where Q is the quantity demanded, P is the price of the product or service, Y is the income of the consumer, T is the tastes and preferences of the consumer, and Pr is the price of related goods.
Community Answer
What is market demand function? and individual demand function?
Market demand function refers to the functional relationship between market demand and the factors affecting market demand.
Individual demand function refers to the functional relationship between individual demand and the factors affecting individual demand.
Individual demand function refers to the functional relationship between individual demand and the factors affecting individual demand.
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What is market demand function? and individual demand function? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What is market demand function? and individual demand function? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is market demand function? and individual demand function?.
What is market demand function? and individual demand function? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What is market demand function? and individual demand function? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is market demand function? and individual demand function?.
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