demand function

A demand function is a mathematical way to show how much of a product or service consumers want to buy at different prices. It helps professionals understand the relationship between price and quantity demanded. Generally, as the price of an item increases, people tend to buy less of it, and when the price decreases, they tend to buy more. The demand function captures this relationship, allowing businesses and economists to predict how changes in price might impact sales and revenue. It’s a key tool for making informed decisions about pricing, production, and marketing strategies.