Q:
# What Is a Demand Equation?

**A demand equation is an algebraic representation of product price and quantity.** Because demand can be represented graphically as a straight line with price on the y-axis and quantity on the x-axis, a demand equation can be as basic as a linear equation. They can also be much more complex, however, and can require significant algebraic manipulation.

Linear equations can be derived as long as two points on the graph are known. These are used to determine the slope, and then, there are several methods by which someone can determine the y intercept and complete the equation once the slope is found. Once the general linear equation has been completed, it can be used to predict demand based on either the cost or quantity variables.

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Q:
## What Are the Major Determinants of Price Elasticity of Demand?

A: Price elasticity of demand illustrates how the quantity demanded of a good is affected by the change in price of that good. The determinants of price elast... Full Answer >Filed Under: -
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## What Are Some Factors Affecting Demand Economics?

A: The basic factors affecting demand economics are the quantity of a good or service consumers are willing to purchase and the price of the good or service. ... Full Answer >Filed Under: -
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## What Is the Importance of Price Elasticity of Demand?

A: The price elasticity of demand is important because it illustrates the effect that a change in price has on the quantity demanded of a particular good. It ... Full Answer >Filed Under: -
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## What Are Examples of Elastic and Inelastic Goods?

A: Elasticity is a term that describes how much the demand or supply for a product or service changes in relation to that product’s price. Each product on the... Full Answer >Filed Under: