A market demand function is a mathematical equation that shows the quantity of a product or service that all consumers in a market are willing and able to buy at different price levels, holding all other factors constant.
It is typically represented as Q = f(P), where Q is the total quantity demanded by all consumers in the market, P is the price of the product or service, and f(P) is the demand function.
The market demand function is derived by summing the individual demand functions of all consumers in the market. It reflects the relationship between price and quantity demanded at the market level, and can be used to determine the optimal price and quantity for a firm to produce and sell in order to maximize profits.
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A market demand function is a mathematical equation that shows the quantity of a product or service that all consumers in a market are willing and able to buy at different price levels, holding all other factors constant.
It is typically represented as Q = f(P), where Q is the total quantity demanded by all consumers in the market, P is the price of the product or service, and f(P) is the demand function.
The market demand function is derived by summing the individual demand functions of all consumers in the market. It reflects the relationship between price and quantity demanded at the market level, and can be used to determine the optimal price and quantity for a firm to produce and sell in order to maximize profits.