Inverse demand function

ID: inverse-demand-function

The inverse demand function is a mathematical representation that shows the relationship between the price of a good and the quantity demanded of that good, but expressed in terms of price as a function of quantity. In other words, while a standard (or direct) demand function typically expresses quantity demanded as a function of price (Q = f(P)), the inverse demand function expresses price as a function of quantity demanded (P = g(Q)).

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