demand function - a curve, every point of which varies depending on the needs of individual groups of goods as well as on a number of influencing factors.There is another interpretation of the economic concepts.According to him, the demand function - a mutual dependence that exists between the price of a commodity and consumer demand for it.At the same time other factors are considered to be a constant value.
When constructing models based on consumer demand, which find their application in the use of mathematical methods of statistics, using data obtained in the processing of information on the price factor, as well as the level of income of the population.Consideration is also given:
- data on the presence of the consumer and the timing of the use of objects related to durable goods;
- family composition;
- large-scale construction of housing, which serves as the basis for the existence of demand for the purchase of furniture, etc.
most frequently used single-factor economics demand function.It reflects the needs of households dependent on the level of income they receive.Charts, built on this data, curves are E.Engelya name - in honor of the German scientist who first studied their properties.
demand function in the generalized form expresses the direct dependence of the volume of demand or consumption of various benefits from the average income of the population.The nature of these curves can be varied according to the available indicators.Thus, in compliance with the proportionality requirements of growth and income, there is a linear function of demand.The horizontal x-axis represents the value of charting changes in cash flows of households.The ordinate (vertical) is the line on which we can see the volume of demand.Resulting from the use of existing indicators will be almost a straight line.An example of such a function can serve as the dependence of expenditure and income of workers and employees in the berries and fruit, ready-made clothes and knitwear, as well as seafood.
There is also a relationship that is characterized by a rapid growth in demand for any particular product group with an overall increase in incomes.The graph of this function has the form of a convex curve.
economic theory is reviewed and the backlog of demand growth in the number of funds that occurs at a certain saturation of demand.The graph of this dependence has the form of a concave curve type.
The mechanism of the market economy is a function of supply and demand.The growing needs of the population is a prerequisite for the manufacturer to increase or start production of certain goods.Demand creates supply of necessary household products, their quality and assortment list.The supply function is the ability to link consumers and producers, and the purchase of finished products to their sale.Due to the increasing demand is an increase in the release of goods.At the same time continuously improve the quality of the manufactured product and lower its manufacturing costs.This leads to an increase in the number of proposals.
to achieve balance in the consumer market is a necessary condition for market research.It is broken down into several categories:
- realized (satisfied);
- unsatisfied;
- formed.
demand is realized in the case where there is a constant sale of a group of products, which is available in commerce.Unmet needs arise in the presence of the population of funds for the purchase of a particular product when it is insufficient.
