Relation between price and the quantity demanded, holding all else constant
The demand function specifies the relation between the quantity demanded and all variables that determine demand. The demand curve expresses the relation between the price charged for a product and the quantity demanded, holding constant the effects of all other variables. Frequently, a demand curve is shown in the form of a graph, and all variables in the demand function except the price and quantity of the product itself are held fixed. In the automobile demand function given in Equation 4.3, for example, one must hold income, population, interest rates, and advertising expenditures constant to identify the demand curve relation between new domestic automobile prices and quantity demanded.
Was this article helpful?
Don't Blame Us If You End Up Enjoying Your Retired Life Like None Of Your Other Retired Friends. Already Freaked-Out About Your Retirement? Not Having Any Idea As To How You Should Be Planning For It? Started To Doubt If Your Later Years Would Really Be As Golden As They Promised? Fret Not Right Guidance Is Just Around The Corner.