Purchase Solution

What is the difference between a demand function and a demand curve?

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution
Solution Summary

You will find the answer to this puzzling question inside...

Solution Preview

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 ...

Purchase this Solution
Free BrainMass Quizzes
Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Movement along the demand curve and a shift in demand

    397742 Movement along the demand curve and a shift in demand are briefly contrasted. Explain the difference between movement along the demand curve and a shift in demand. Give an example to help the class understand the difference between the two.

  • increase in demand and an increase in quantity demanded

    34443 increase in demand and an increase in quantity demanded Can you please explain fully the difference between an increase in demand and an increase in quantity demanded, by giving an example of what would cause an increase in quantity demanded and

  • Demand and Supply Scenario and Elasticities

    A product's Demand Curve is: Qd=50 - 2P, and Supply Curve is Qs= 40 + P. a. When P=$10, what is the difference, if any, between Qd and Qs?

  • Product Demand Curve

    125453 Product Demand Curve: Equilibrium Values of P and Q A product's Demand Curve is: Qd=25-P and its Supply Curve is: Qs =10 + 2P a. When P = $20 WHAT is the difference, if any between Qd and Qs b.

  • What happens to the demand curve with determinants change?

    What are the determinants of demand and what happens to the demand curve when each of these determinants change? What is the difference between a change in demand and a change in the quantity demanded?

  • Revenue, Supply and Demand Functions : Derivatives and Integrals

    That is, Consumers' Surplus = where D(x) is the demand and M(x) is the market price evaluated at a particular quantity x. Getting at the concept: Recall that the demand curve can be viewed as a willingness-to-pay curve.

  • Movement shifts demand curve, changes supply/demand

    So a change in the price of a good always leads to movement along the curve. This is what the demand curve is. It establishes a relationship between the price of a good and the quantity that consumer(s) demand.

  • movement along the demand curve and a shift in demand

    168591 Explain the difference between a movement along the demand curve and a shift in demand. I need some assistance. Thank you. 1. Explain the difference between a movement along the demand curve and a shift in demand. b.

  • Managerial Economics

    a. 100 units b. 500 units c. 1,100 units d. 950 units Answer: The difference between a price decrease and an increase in income is that a. A price decrease does not affect the consumption of other goods while an increase in income does b.

View More Related Solutions