How do lower prices tend to affect demand?
2 answers:
The lower prices tends to the demand as per the law of command.
Further explanation:
A demand equation is a mathematical relationship between the price of the commodities/goods or services and the number of consumers.
The standard form of a linear demand function can be written as where is the quantity of a good and denotes the price of the goods.
The demand of a good depends on this factors price, point of time, market place.
There is indirect relationship between the price of the commodity and the quantity of the good.
Here, the price of the good is the independent value and the quantity of the good is the dependent value.
As the price will decrease then the demand of that commodity will increases because every consumer wants to buy the goods at the low prices during a given period of time and vice versa.
The increase in demand represents the consumption of the commodity increases.
This is known as the law of demand.
The graph of the demand function has negative slope.
Therefore, the lower prices tends to increase the demand as per the law of command.
Learn more:
- Learn more about the function is graphed below brainly.com/question/9590016
- Learn more about the symmetry for a function brainly.com/question/1286775
- Learn more about domain of the function brainly.com/question/1982148
Answer details:
Grade: High school
Subject: Mathematics
Chapter:Demand function
Keywords: Demand, graph, mathematical function, prices, goods, consumers, commodity, affects, substitute goods, income, complementary goods, demand curve
For this case what you should do is observe the classic graph of supply and demand.
In this graph, we are going to visualize only the demand curve.
Two facts are met for the claim:
1) If the price is high, the quantity demanded decreases.
2) If the price is low, the quantity demanded increases.
Answer:
The lower prices imply an increase in the quantity demanded.
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