Domain Of Price Demand Function

Let us assume that the quantity demanded of a commodity x is d x which depends only on its price p x while other factors are constant.

Domain of price demand function. An increase in the price of the commodity decrease the demand for that commodity while the decrease in price increases its demand. Other factors remaining constant the quantity demanded will be 415 1 2p. In a market the quantity of a commodity demanded by the consumer depends on its price.

The relationship between the quantity and the unit price of a commodity demanded by consumer is called as. Concept of demand function demand. A express the price p as a function of the demand x and find the domain of this function.

A demand function is a mathematical equation which expresses the demand of a product or service as a function of the its price and other factors such as the prices of the substitutes and complementary goods income etc. It can be mathematically represented as. R p p cdot x p p cdot 20p 500 where the domain in terms of p is 0 p leq 25.

As for the revenue function r we need to know how it s actually defined. The price function is p the price demand equation and the cost function for the production of table saws are given respectively by x 6 000 20p and c x 98 000 70x where x is the number of saws that can be sold at a price of p per saw and c x is the total cost in dollars of producing x saws. Presumably revenue is price times quantity demanded.

The phenomena is termed as law of demand. When the quantity demanded is expressed only as a function of the price of the product it is called a demand function. If the price of the commodity increases then the demand decreases and if the price of the commodity decreases then the demand increases.

It can be termed as a desire with the willingness and ability to pay for a commodity.