Demand Function
Asweknow, afunctionisasymbolicstatementofarelationshipbetweenthedependentandtheindependent variables.
The demand function states the relationship between the demand for a product (the dependent variable) and its determinants (the independent or explanatory variables). A demand function may be expressed as follows:
Dx = f (PX, M, PY, PC, T, A)
Where
Dx is the quantity demanded of product X
PX is the price of the commodity
M is the money income of the consumer
M is the money income of the consumer
PY is the price of its substitutes
PC is the price of its complementary goods
T is consumer tastes, and preferences
PC is the price of its complementary goods
T is consumer tastes, and preferences
A is advertisement expenditure
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