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

Demand Functions In Different Forms Graphs of quantity demanded against price D P Q

The Mathematics of Demand Functions Demand Functions In Different Forms Graphs of quantity demanded against price –They need not be straight lines D P Q

The Mathematics of Demand Functions Demand Functions In Different Forms Tables PriceQuantity $ $ $0.6080

The Mathematics of Demand Functions Demand Functions In Different Forms Mathematical equations Q=100-2P

The Mathematics of Demand Functions Demand Functions In Different Forms Mathematical equations –Linear or Non Linear Q=100-2P Q=10P -2

The Mathematics of Demand Functions 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 Demand Functions A Graphical Interpretation Knowing price we know quantity demanded. D P Q

The Mathematics of Demand Functions A Graphical Interpretation It also works the other way. D P Q

The Mathematics of Demand Functions Ditto with Tables PriceQuantity $ $ $0.6080

The Mathematics of Demand Functions An Example Q = 100 – 2P

The Mathematics of Demand Functions An Example Q = 100 – 2P 2P + Q = 100 – 2P +2P

The Mathematics of Demand Functions An Example Q = 100 – 2P 2P + Q = 100 – 2P +2P 2P + Q = 100

The Mathematics of Demand Functions An Example 2P + Q = 100 2P + Q – Q = 100 – Q 2P = 100 – Q

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

The Mathematics of Demand Functions A Second Example P = 50 – (1/2)Q

The Mathematics of Demand Functions A Second Example P = 50 – (1/2)Q 2P = 2[50-(1/2)Q] 2P = 100 – Q

The Mathematics of Demand Functions A Second Example 2P = 100 – Q Q + 2P = 100 – Q + Q Q + 2P = 100

The Mathematics of Demand Functions A Second Example Q + 2P = 100 – Q + Q Q + 2P = 100 Q + 2P – 2P = 100 –2P Q = 100 – 2P

The Mathematics of Demand Functions Some Assignments P = 12 – 3Q Q = 100 – 10P

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

The Mathematics of Demand Functions End ©2004 Charles W. Upton