MathLiveLaw of demand
States that the quantity demanded of a good falls as its price rises, so the demand function is decreasing in price. It is used to describe consumer behaviour and to sketch demand curves.
Q_x = f(P_x), \quad f'(P_x) < 0What the symbols mean
| quantity demanded of good x | |
| price of good x | |
| demand function mapping price to quantity demanded | |
| derivative of the demand function with respect to price, negative under the law |
About this formula
- FieldEconomics and finance
- TopicMicroeconomics
- LevelHigh school
- Also calleddemand function, quantity demanded falls as price rises, inverse relationship price quantity demanded, downward sloping demand curve
- SourceWikidata Q3875012
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