Monday, April 19, 2010

Demand function

Demand function
In economics,the term demand has a specific meaning.Demand is a functional relationship revealing the will be purchase of a particular relationship revealing the quality that will be purchased of a particular commodity at various prices,at given time and place.Hence,according to J.L.Pappas and E.F.Brigham "The demand the quantity demanded and the factors that this quantity."
Similarly,according to Weston and Getz-"In a given market,in a given period of time.the demand function for a commodity is the relation between the various amounts of the commodity that might be bought and the determinants of those amounts."In economics,the relationship is portrayed both asthmatically in the forms of a demand schedule and graphically in the firms of chart.Demand schedule means a table showing prices and corresponding quantities and the chart is a pictorial representation of a demand schedule which is called demand curve.However,since demand is a functional concept,it may also be expressed algebraically in the form of an equation such as.
The equation means that demand is a function of price.This is a demand function showing simple relation.
But in reality,demand for most products is affected by many factors other than price.These factors may include the price of the commodity in question,consumer incomes,tastes and preference,prices and availability of of competitive goods,expectation of price changes,advertising expenditures and so on.

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