We have meaning of Demand function and Types of demand function. We have detail information of the demand functions.

**Demand function and Types of demand function**

Following is the detail information of the demand function.

**Meaning of the demand function**

Demand function is the functional /numerical/ mathematical relationship between demand and its determinants. Similarly, the demand function shows how the quantity demanded of a good or service changes as its price, consumer income, and other factors change.

Demad function is expressed as:

Qx = f(Px,Py,Y,T,P,A)

Where.

Qx = demand for goods x

Px = price of goods x

Py = price of related goods

Y = Income

T = Taste and preference ,

A= Advertisement

Hence,

the demand function is necessary to understanding consumer behavior and predicting market trends.

**Types of Demand Function**

Following are the types of demand function.

**1) Linear Demand Function : **

A demand function is said to be linear when slope of demand curve are same or constant throughout its length.

Linear Demand function is expressed as

Qx = a-bPx

Where

Qx = quantity demand for x goods

a = autonomous demand

b = slope of demand curve

Px = price of x goods

Similarly, The linear demand function implies that the demand curve for the good or service is a straight line, with a negative slope. This means that as the price of the good or service increases, the quantity demanded decreases, and vice versa.

**2) Non-linear Demand function:**

A demand function is said to be non-linear when slope of demand curve is not same or constant throughout its length.

Qx = APx ^-b

Where

Qx = quantity demand for x goods

a = autonomous demand

b = slope of demand curve

Px = price of x goods

Similarly, Non-linear demand functions are useful when the relationship between price and quantity demanded is more complex than a simple linear relationship.

**Other Important Links: **

a. BBS 1st Year all subject notes: CLICK HERE

**Frequently Asked Questions. **

**What is demand Function?**

= Demand function is the functional /numerical/ mathematical relationship between demand and its determinants.