<p>Adding to the points made in Giskard's answer ...</p>

<p>In a competitive market, price and quantity are <em>simultaneously determined</em> by the intersection of supply and demand.  So neither the ordinary market demand function (quantity as a function of price) nor the inverse market demand function (price as a function of quantity) can be considered more significant or fundamental, or as expressing a causal relation in a more natural way.</p>

CC BY-SA 4.0
2019-09-29T19:04:12.953Z
2019-09-29T19:04:12.953Z
Adam Bailey
<p>Inverse demand maps from quantity to value. It is useful to identify how much some units of the good are worth to the consumers. The central welfare concepts of consumer's and producer's surpluses rely on inverse functions in their definitions.</p>

<p>In addition there are special cases (e.g. perfectly inelastic demand) where defining inverse demand is just easier. </p>

CC BY-SA 4.0
2019-09-29T14:06:24.573Z
2019-09-29T14:06:24.573Z
Giskard
<p>Why do we need separate form of demand? Where do we use inverse demand form? concept only. </p>

<supply-and-demand>
Is there any specific significance of inverse demand?
desi arthshastri
# Is there any specific significance of inverse demand?

(Asked by: username_0 on 2019-09-29)

Why do we need separate form of demand? Where do we use inverse demand form? concept only.

**Tags:** supply-and-demand


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## 2 answers

### Answer by username_2 on 2019-09-29. Score: 4 | Accepted answer

Inverse demand maps from quantity to value. It is useful to identify how much some units of the good are worth to the consumers. The central welfare concepts of consumer's and producer's surpluses rely on inverse functions in their definitions.

In addition there are special cases (e.g. perfectly inelastic demand) where defining inverse demand is just easier.


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### Answer by username_1 on 2019-09-29. Score: 4

Adding to the points made in username_2's answer ...

In a competitive market, price and quantity are *simultaneously determined* by the intersection of supply and demand. So neither the ordinary market demand function (quantity as a function of price) nor the inverse market demand function (price as a function of quantity) can be considered more significant or fundamental, or as expressing a causal relation in a more natural way.


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