Inverse demand function: Difference between revisions

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In [[economics]], an 'inverse demand function', P = f⁻¹(Q),is a function that maps the quantity of output demanded to the market price (dependent variable) for that output. Quantity demanded, Q, is a function of price; the inverse demand function treats price as a function of quantity demanded, and is also called the price function.<ref>Samuelson, W and Marks, S Managerial Economics 4th ed. page 35. Wiley 2003.</ref> Note that the inverse demand function is not the reciprocal of the demand function&mdash;the word "inverse" refers to the mathematical concept of an [[inverse function]].