The Mathematics of Demand Functions
Demand Functions In Different Forms
Demand Functions In Different Forms
Demand Functions In Different Forms
Demand Functions In Different Forms
Demand Functions In Different Forms
Indirect demand functions
A Graphical Interpretation
A Graphical Interpretation
Ditto with Tables
An Example
An Example
An Example
An Example
An Example
A Second Example
A Second Example
A Second Example
A Second Example
Some Assignments
Some Assignments
End
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Category: economicseconomics

The Mathematics of demand functions

1. The Mathematics of Demand Functions

P
The Mathematics of Demand
Functions
D
Q
Lectures in Microeconomics-Charles W. Upton

2. Demand Functions In Different Forms

• Graphs of
quantity
demanded against
price
P
D
Q
The Mathematics of

3. Demand Functions In Different Forms

• Graphs of
quantity
demanded against
price
P
– They need not be
straight lines
D
Q
The Mathematics of

4. Demand Functions In Different Forms

• Tables
Price
Quantity
$0.40
100
$0.50
90
$0.60
80
The Mathematics of

5. Demand Functions In Different Forms

• Mathematical
equations
Q=100-2P
The Mathematics of

6. Demand Functions In Different Forms

• Mathematical
equations
– Linear or Non
Linear
Q=100-2P
Q=10P-2
The Mathematics of

7. 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

8. A Graphical Interpretation

• Knowing price
we know quantity
demanded.
P
D
Q
The Mathematics of

9. A Graphical Interpretation

• It also works the
other way.
P
D
Q
The Mathematics of

10. Ditto with Tables

Price
Quantity
$0.40
100
$0.50
90
$0.60
80
The Mathematics of

11. An Example

Q = 100 – 2P
The Mathematics of

12. An Example

Q = 100 – 2P
2P + Q = 100 – 2P +2P
The Mathematics of

13. An Example

Q = 100 – 2P
2P + Q = 100 – 2P +2P
2P + Q = 100
The Mathematics of

14. An Example

2P + Q = 100
2P + Q – Q = 100 – Q
2P = 100 – Q
The Mathematics of

15. An Example

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

16. A Second Example

P = 50 – (1/2)Q
The Mathematics of

17. A Second Example

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

18. A Second Example

2P = 100 – Q
Q + 2P = 100 – Q + Q
Q + 2P = 100
The Mathematics of

19. A Second Example

Q + 2P = 100 – Q + Q
Q + 2P = 100
Q + 2P – 2P = 100 –2P
Q = 100 – 2P
The Mathematics of

20. Some Assignments

P = 12 – 3Q
Q = 100 – 10P
The Mathematics of

21. Some Assignments

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

22. End

©2004 Charles
W. Upton
The Mathematics of
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