Question

what is demand function??
plzz give short defination
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Answer 1

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Explanation:

A demand function is a mathematical equation which expresses the demand of a product or service as a function of the its price and other factors such as the prices of the substitutes and complementary goods, income, etc.

A demand functions creates a relationship between the demand (in quantities) of a product (which is a dependent variable) and factors that affect the demand such as the price of the product, the price of substitute and complementary goods, average income, etc., (which are the independent variables).

Let’s consider the market for ride-hailing apps and find out the factors that can affect the number of kilometers of ride-hailing services demanded by riders on a day. The most important factor is the price charged per kilometer. Other potential factors are the determinants of demand including price of substitutes i.e. price of the public transportation or competing cab services, whether it is a working day or a weekend, whether it is a clear or a rainy day, etc.

One method of creating a demand function to use multiple regression analysis to find out the relationship between quantity demanded, the product price and all other factors. The multiple regression analysis assigns different coefficients to each of the factor that affects the demand. The sign of the coefficient (i.e. positive or negative) tells us whether the demand and the factor are positively-related or negatively-related.

Answer 2

Explanation:

In economics,a demand curve is a graph depicting the relationship between the price a certain commodity and the quantity of that commodity that is demanded at the price