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New Mexico | which is the resultant act (verb) for what purchasers REALLY did or are doing.
Demand is a Function of Volume Moved X Price recieved.
Thus:
xyz Demand Function = Volume moved ( in a specific time frame) X Price ( national cash index price for said time frame ).
The afore gives a more true light on if there was expanding demand, steady, or lower demand for a product.
Demand function could be run as to 4 areas on corn or a simple total equation too.
Exports
Feed Use
Food or fructose use
E
The higher your "demand function" result, generally means increase of demand for product.
Obviously More Volume Moved at Higher Price = Higher Demand Function
Also though Same Volume Moved at slightly higher Price results in higher demand function
Also Less Volume Moved at Higher Price can result in a higher demand function in some instances.
If the same or less volume moves at a lower price ( or at the same old price ) generally = Less demand function thus less actual demand for product.
Since ALL commodities move at some price, the afore is a method to truely quantify demand for a product.....demand function is a number of said....not just another flipping opinion.
Edited by Markwright 8/13/2010 22:24
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Try some " Demand Function " equations and comparisons
