Posted: 2/15/2010 5:02:29 PM EDT
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Okay so I'm doing some econ homework dealing with Demand Curves, more specifically the demand function.
I understand the curve in principle I just need a little help with obtainin the demand function. The book and notes say the following: "An example is the estmimated demand function for the processed pork in Canada: Q = 171 - 20p + 20pb + 3pc +2Y. With p being the price/unit, pb being price/beef, pc being the price for chicken, and Y being the consumers income." Okay, I understand what it is all saying...but what is 171 representing? It seems every example starts out with a different number...but does not reference what it is. What is it? |
| it's a " constant " - the one factor in the equation that does not vary with changes in the price or quantity of the other factors it will be different in any demand equation since it is essentially the invariable quanity of a specific item if all other factors are zero. |