My prof said that "economicsts reverse the axes when graphing", so does this same rule apply for the supply? Is this "reversing the axes" what causes the function to be "flipped" or rewritten in that format with P= ..... ? I understand the math, but not the logic/reason for this, it would be greatly appreciated for the explanation. Also, don't understand why my prof wrote the red line for demand as D(P) and also wrote Quantity variable as D(P)
So the logical reasoning is that we normally think of Quantity Supplied or Quantity Demanded as a function (dependent on) Price, and not the other way around. In other words, how much of a good people demand is based off the price of the good. We wouldn’t really say that the price of the good depends on demand (even though in some circumstances this may be true). Your prof writing the red line as D(P) is just them using function notation to say that Demand is a function of price. TECHNICALLY speaking, it’s incorrect notation as demand isn’t the variable, but rather, quantity demanded (Qd) is, but many profs write it informally as D(P). In my lectures I always write it as Qd(P) for my students to avoid confusion. Hope this helps! If not, let me know and I’ll attempt to elaborate some more!
Sir I have a problem please make a video solution 🙏 Given the supply and demand function,calculate the equilibrium price and quantity P= Q*Qs + 14Qs +22 P= -Q*Qd -10 Qd+150 Here * that means multiple In simple told we can say Q raise to the power
i might be wrong for this but if these are quadratic equations you can solve both equations and if at least one of the answers are the same (for example if you got 5 in one of the equation's answers and 5 in other equation's answers) that should be the quantity equilibrium and for price equilibrium just reverse the function as shown in the video
That's a very good question. So you'll notice that the demand equation is linear, so the inverse demand equation takes on the form y=mx+b. m is the slope (rate of change) and b is the y-intercept (starting point) of the line! These will often be given to you in the question, but that's what the values actually mean. Hope this helps! :)
Sometimes you'll be given the inverse and be expected to graph it and find equilibrium with an original supply equation, so it's important to know how to flip back and forth between them!
If you enjoyed the video and found it helpful, consider subscribing to the channel for more educational econ content! :)
Done🔥,,,you a good tutor
@@Vector-ig5ms Thank you!
Another absolute BANGER of a video 🔥 🔥 🔥
Man thanks, lmao i thought it was impossible to solve! Thank you from France!
My pleasure!
I am Think Econ's biggest fan🥳🥳🥳🙌🏼
My prof said that "economicsts reverse the axes when graphing", so does this same rule apply for the supply? Is this "reversing the axes" what causes the function to be "flipped" or rewritten in that format with P= ..... ? I understand the math, but not the logic/reason for this, it would be greatly appreciated for the explanation. Also, don't understand why my prof wrote the red line for demand as D(P) and also wrote Quantity variable as D(P)
So the logical reasoning is that we normally think of Quantity Supplied or Quantity Demanded as a function (dependent on) Price, and not the other way around.
In other words, how much of a good people demand is based off the price of the good. We wouldn’t really say that the price of the good depends on demand (even though in some circumstances this may be true).
Your prof writing the red line as D(P) is just them using function notation to say that Demand is a function of price. TECHNICALLY speaking, it’s incorrect notation as demand isn’t the variable, but rather, quantity demanded (Qd) is, but many profs write it informally as D(P). In my lectures I always write it as Qd(P) for my students to avoid confusion.
Hope this helps! If not, let me know and I’ll attempt to elaborate some more!
Sir I have a problem please make a video solution 🙏
Given the supply and demand function,calculate the equilibrium price and quantity
P= Q*Qs + 14Qs +22
P= -Q*Qd -10 Qd+150
Here * that means multiple
In simple told we can say Q raise to the power
i might be wrong for this but if these are quadratic equations you can solve both equations and if at least one of the answers are the same (for example if you got 5 in one of the equation's answers and 5 in other equation's answers) that should be the quantity equilibrium and for price equilibrium just reverse the function as shown in the video
Thank you,sir
you can explain very good
Thanks
Thank you!
@@ThinkEcon Thank you sir, you teach so well
@@arbabwaris1432 I appreciate the kind words :)
@@ThinkEcon No need sir
🥰😇
Can you cover equations that have fractions in them? Ex. P=2/Q
Also great job keep going🙌
You got it! Check out our video here: ruclips.net/video/cecL5G-BEDQ/видео.html
Very helpful video god bless you
Thank you very much!
by how the value is given to the variables..... Like in this case how 240 and 5 have been written
That's a very good question. So you'll notice that the demand equation is linear, so the inverse demand equation takes on the form y=mx+b. m is the slope (rate of change) and b is the y-intercept (starting point) of the line! These will often be given to you in the question, but that's what the values actually mean. Hope this helps! :)
Thank you so much❤
You're welcome!
Thankyou ❤
You're very welcome!
Make videos on game theory
You are brilliant
Whats the point of finding the inverse demand equation if its the same as the original demand equation?
Sometimes you'll be given the inverse and be expected to graph it and find equilibrium with an original supply equation, so it's important to know how to flip back and forth between them!
❤❤
I am really happy after seeing this coz my all doubts got clear.....thanku u from Kashmir. ❣️
when would you post videos for monopoly ? :(
That's a great video idea. Many people struggle with the monopoly graphs and calculations
@@ThinkEcon It would be fantastic and helpful, all your videos are so useful for my Econ class. Literally the BEST!
@@chavezbalbuenachristian5714 I appreciate the kind words! We'll look into putting out some monopoly and monopolistic competition videos then!
🎉🎉
🎉🎉🎉
how do i convert from inverse to demand fn
It would be the exact same steps, but you would be isolating for Q instead of P. You would use inverse operations
@@ThinkEcon yeah i got it,, ty