Inverse Demand Function Calculator



Inverse Demand Function Calculator helps calculating the Inverse Demand Function.

What is Inverse Demand Function?

In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.

In economics, an Inverse Demand Function is the inverse function of a demand function. The inverse demand function views price as a function of quantity.

What is the General Form of Inverse Demand Function?

Given the general form of Demand Function: Q = f(P),

then the general form of Inverse Demand Functionis: P = f^-1(Q)

Example of Inverse Demand Function

For example: if the Inverse Demand Function is:

P = 80 - 10 Q

The Inverse Demand Curve is:

Q = 8.00 - P / 10

Demand Curve: P = - Q

P = Price Q = Quantity