I watched Schweser video for SS4. The instructor explains in the video that formula of Demand Function is :
Quantity = a + (b x Price)
However in the Schweser notes the forumla reads as:
Quantity = a - (b x Price)
Which one is the correct formula of Demand Function?
You tell us: when price increases, does the quantity (of, let’s presume, a typical good, not a Giffen good, not a Veblen good) demanded increase or decrease?
Which formula illustrates that behavior?
If your good is not a giffen good or a Veblen good, then, the second formula will be correct. Because, when the price will fall quantity demanded will increase.