№3 (58), 2021. MANAGEMENT OF INDUSTRIAL ENTERPRISES, MATHEMATICAL AND INSTRUMENTAL METHODS OF ECONOMICS

A.E. Volkov, G.L. Volkova

Demand curve modeling

The article attempts to construct the demand curve based on various factor models. Factor models of enterprise profitability are considered. The first one assumes that all factors are independent from each other. The second one considers the case of dependence of one factor on another. For each model we describe how the demand curve is constructed and what form it takes. It is shown that in the first model the demand curve is described by linear relationship, and in the second – by quadratic. The use of the second refined factor model allows to predict the path of the company more accurately.

Keywords: demand curve, profitability factor model, factor codependence, elasticity coefficient.

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