To determine the consumer surplus using the demand equation, you'll first need to establish the equilibrium price – the price where consumer demand is fully satisfied and all goods are sold.

The utility function can be used to derive the demand function, and both concepts relate to utility maximization.

The Linear Demand Function A linear demand function is an algebraic formula for calculating demand curves without having to draw a demand function graph.

Conventionally, the money demand function is estimated using a regression of the logarithm of money demand on either the interest rate or the logarithm of the interest rate. This equation is presumed ...