Inverse Demand Function: Price as a Function of Quantity
The inverse demand function, written as , defines price as a function of quantity. [3] This representation aligns with the standard graphical display of a demand curve, with price on the vertical axis and quantity on the horizontal axis. [1] It specifies the maximum price a firm can set to sell a given quantity of its product. While the direct demand function is used to express price elasticity in terms of price, the inverse demand function is useful for expressing elasticity entirely in terms of quantity.
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CORE Econ
Introduction to Microeconomics Course
Ch.8 Supply and demand: Markets with many buyers and sellers - The Economy 2.0 Microeconomics @ CORE Econ
Ch.7 The firm and its customers - The Economy 2.0 Microeconomics @ CORE Econ
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