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  2. Inverse demand function - Wikipedia

    en.wikipedia.org/wiki/Inverse_demand_function

    For example, if the demand function has the form = then the inverse demand function would be =. [5] Note that although price is the dependent variable in the inverse demand function, it is still the case that the equation represents how the price determines the quantity demanded, not the reverse.

  3. Cobweb model - Wikipedia

    en.wikipedia.org/wiki/Cobweb_model

    When supply and demand are linear functions the outcomes of the cobweb model are stated above in terms of slopes, but they are more commonly described in terms of elasticities. The convergent case requires that the slope of the (inverse) supply curve be greater than the absolute value of the slope of the (inverse) demand curve:

  4. Demand curve - Wikipedia

    en.wikipedia.org/wiki/Demand_curve

    A demand curve is a graph depicting the inverse demand function, [1] a relationship between the price of a certain commodity (the y-axis) and the quantity of that commodity that is demanded at that price (the x-axis).

  5. Demand - Wikipedia

    en.wikipedia.org/wiki/Demand

    For example, if the demand equation is Q = 240 - 2P then the inverse demand equation would be P = 120 - .5Q, the right side of which is the inverse demand function. [13] The inverse demand function is useful in deriving the total and marginal revenue functions. Total revenue equals price, P, times quantity, Q, or TR = P×Q. Multiply the inverse ...

  6. Total revenue - Wikipedia

    en.wikipedia.org/wiki/Total_revenue

    Letting TR be the total revenue function: () = (), [1] where Q is the quantity of output sold, and P(Q) is the inverse demand function (the demand function solved out for price in terms of quantity demanded).

  7. Markup rule - Wikipedia

    en.wikipedia.org/wiki/Markup_rule

    On the other hand, a competitive firm by definition faces a perfectly elastic demand; hence it has = which means that it sets the quantity such that marginal cost equals the price. The rule also implies that, absent menu costs , a firm with market power will never choose a point on the inelastic portion of its demand curve (where ϵ ≥ − 1 ...

  8. Supply and demand - Wikipedia

    en.wikipedia.org/wiki/Supply_and_demand

    In keeping with modern convention, a demand curve would instead be drawn with price on the x-axis and demand on the y-axis, because price is the independent variable and demand is the variable that is dependent upon price. Just as the supply curve parallels the marginal cost curve, the demand curve parallels marginal utility, measured in ...

  9. Revealed preference - Wikipedia

    en.wikipedia.org/wiki/Revealed_preference

    Revealed preference theory was a means to reconcile demand theory by defining utility functions by observing behaviour. Therefore, revealed preference is a way to infer the preferences of individuals given the observed choices. It contrasts with attempts to directly measure preferences or utility, for example through stated preferences.