Inverse demand function: Difference between revisions

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In [[economics]], an '''inverse demand function''' is a function that compares the quantity of output to the market price for that output.

In mathematical terms, if the [[demand function]] is f(x), then the inverse demand function is 1/f(x),. ie itThis is to say that the inverse demand function is the [[demand function]] with the axes switched. On a normal [[demand curve]], the vertical axis isshows [[price]] per unit and the horizontal axis isshows units of [[demandquantity demanded]]. On an inverse demand curve, the vertical axis isshows units of [[demandquantity demanded]] and the horizontal axis isshows [[price]] per unit.

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