demand equation
nounUK /dɪˈmɑːnd ɪˈkweɪʒən/
US /dɪˈmænd ɪˈkweɪʒən/
A math rule that shows how much of something people will buy at different prices.
The demand equation shows that fewer people buy toys when the price goes up.
RELATED WORDS
OTHER MEANINGS
2. A mathematical expression linking the quantity demanded of a good to its price and other factors.
Economists estimated the demand equation using sales data from the past year.
3. A linear model in which quantity demanded falls as price rises.
The simple demand equation is Q = a − bP, where b is positive.
4. A formula used in business planning to predict how many units customers will want.
The marketing team used a demand equation to forecast next quarter's sales.