About Linear Demand Functions

Save
Next Video:
Definition of a Prime Number....5

Linear demand functions are demand functions that can be graphed with a line, thus following a linear pattern. Discover how to do an example of a linear function math problem with help from a math teacher in this free video on math help and linear demand functions.

Part of the Video Series: Algebra & Math Help
Promoted By Zergnet

Comments

Video Transcript

So what are some linear demand functions? Hi, I'm Jimmy Chang, I've been teaching college mathematics for over nine years, and linear demand functions are demand functions that follow a linear pattern. In other words, the demand functions can be graphed via a line. Now, the demand really depends on what the price happens to be, so therefore, linear demand functions tend to be that of a downward line, because, the higher the price, generally, the lesser the demand. So, we're going to just do an example of a linear demand function and give you an idea of how price is related to demand. Now typically, the P stands for price, and Q stands for demand. And an example that we're going to talk about today is Q equals 60 minus 1/2P. Now, for example, let's just say your price was, for this particular item, was ten dollars. What you would do to figure out the demand is, you'll plug in 10 where the P is, so you'll have Q equal to 60, minus 1/2 X 10. Now as you know, one half of 10 is 5, so you have 60 minus 5, which is 55. So, in this particular instance, when the price is ten dollars, the demand will be 55 items. Now, let's just say your P, your price was thirty dollars, and then you want to find out what the demand of that happens to be. So you have Q equals to 60, minus 1/2 of 30, and as you know, half of 30 is 15, so you have 60 minus 15, which is 45 items. So when the price is tripled in this particular instance, the number of items decrease by 10. Now typically, that's pretty normal because the more you charged your price, the less for demand. But, there are many other demand functions out there, but linear demand functions are a good foundation to understand this aspect of business. So, I'm Jimmy Chang and this is a demonstration of linear demand functions.

Featured

Related Searches

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!