Question

How do I make a market demand step function?

Answer 1

The demand curve shows the different amount of quantity demanded for different price levels. Usually the demand curve is a smooth curve, this is because we measure the change in demand for small change in price level. The change in demand is assumed to be a continuous function as the quantity is assumed to be continuous involving integers and fractions.

However, if the quantity demanded is discrete number, then the demand function becomes step function. In other words, if the change in demand for a change in price level takes places in the form of discrete function where it can take only integer or whole numbers then the market demand can become step function.