What is the difference between a demand function and a demand curve?
How will each of the following affect the position of the demand curve for videocassette recorders?
a. An increase in the price of VCR tapes.
b. A decrease in the price of VCRs.
c. An increase in per capita income.
d. A decrease in the price of movie tickets.
If the demand for a product is inelastic, what will happen to total revenue if price is increased? Explain.
What signs are the cross elasticities for substitute products? Explain.
Demand curve is the graphical representation of the demand function. The demand function relates price and quantity demanded. It tells how many units of a good will be purchased at different prices. In general, at higher prices, less will be purchased, so demand curves slope downward. The market demand function is calculated by adding up all of the individual consumers' demand functions.
The demand curve described by the demand function, and is the relationship between quantity and its own price, given all other factors constant.
Demand function on the other hand, is the mathematical function that relates price and quantity demanded for goods or services.
It is the relationship between quantity demanded and all the factors: Q=f(p,pg,pt,y)
It tells how many units of a good will be purchased at different prices. The market demand function is calculated by adding together all of the individual consumers' demand functions.
a. Demand curve will shift to the left as VCR tapes and Videocassette recorders are compliments, if the price for the tapes ...
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