Saturation level (economy)

Fig. 1) Example of a (linear) demand curve with a saturation amount of ${\displaystyle a=Q(P=0)=4}$

The saturation level is an extreme point of the demand curve of the micro-economic market model and gives the quantity demanded of that would demand at a price of zero.

In the business section Business Administration , which has been developed from the microeconomics, the demand function is inverse demand function called. In the case of a normally running linear price-sales function , the saturation quantity marks the section of the demand or price -sales curve on the quantity axis, while the prohibitive price forms the section on the price axis. ${\displaystyle Q(P)=a-bP,\quad a,b>0}$

The second extreme point (demand is zero) is called the prohibitive price.

Determination of the amount of saturation

In an aggregated demand function, the amount of saturation is given by , i. H. the price zero is assigned to it. In a regularly running linear demand function , the saturation quantity marks the section of the demand curve on the quantity axis, while the prohibitive price forms the axis section on the price axis. ${\displaystyle a=Q(P=0)}$ ${\displaystyle Q(P)=a-bP,\quad a,b>0}$

The assumption of the existence of saturation sets means that the axiom of unsaturation is dispensed with. This implies utility functions with a maximum value.

See also

• Prohibitive price

Individual evidence

1. ↑ Hal Varian, Grundzüge der Mikroökonomie , 8th edition, Oldenbourg Wissenschaftsverlag, Munich, 2013, o. P.