demand function
nounUK /dɪˈmɑːnd ˈfʌŋkʃən/
US /dɪˈmænd ˈfʌŋkʃən/
A demand function is a math rule that shows how much of something people will buy at different prices.
The store used a demand function to guess how many toys it would sell if it lowered the price.
RELATED WORDS
OTHER MEANINGS
2. In economics, a formula linking the quantity demanded of a good to its price and other factors like income.
Economists estimated the demand function to predict sales after a price change.
3. A mathematical expression showing how demand depends on variables such as price, income, and tastes.
The demand function included income as a variable alongside price.
4. The relationship between price and the amount consumers are willing and able to buy.
Plotting the demand function gave a downward-sloping line on the graph.