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0:10 1:46 Suggested clip Change in Demand vs Change in Quantity Demanded- Key Concept YouTubeStart of suggested client of suggested clip Change in Demand vs Change in Quantity Demanded- Key Concept
In its standard form a linear demand equation is Q = a — BP. That is, quantity demanded is a function of price. The inverse demand equation, or price equation, treats price as a function g of quantity demanded: P = f(Q). To compute the inverse demand equation, simply solve for P from the demand equation.
In its standard form a linear demand equation is Q = a — BP. That is, quantity demanded is a function of price. The inverse demand equation, or price equation, treats price as a function g of quantity demanded: P = f(Q). To compute the inverse demand equation, simply solve for P from the demand equation.
Definition of 'Quantity Supplied' Definition: Quantity supplied is the quantity of a commodity that producers are willing to sell at a particular price at a particular point of time. Quantity demanded is the quantity of a commodity that people are willing to buy at a particular price at a particular point of time.
In its standard form a linear demand equation is Q = a — BP. That is, quantity demanded is a function of price. For example, if the demand equation is Q = 240 — 2P then the inverse demand equation would be P = 120 —. 5Q, the right side of which is the inverse demand function.
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