Question

Explain why a linear function may not be adequate for describing the supply and demand functions.

Answer 1

Because when supply is limited the demand may become an exponential function and vice versa.

Answer 2

Linear function may not be adequate for describing the supply and demand functions.

Explanation:

We have to explain why a linear function may not be adequate for describing the supply and demand functions.

• Linear functions are extremely simple functions
• They are of the form:
  `y = f(x) = ax+b`
• Linear function is straight line function with one dependent anf one independent variable.
• Supply and demand function is a complicated function and phenomenon and thus, linear functions cannot be used to approximate supply and demand.

• The supply and demand function cannot be adequately described by linear function due to its simplicity.

• Other functions that can be used to describe supply and demand function are quadratic function, functions with higher degree polynomials, exponential functions based on factors like time and place, etc.
• It the rate of change is not constant then it would mean change in slope which cannot be described by a linear function.