Q = 40-0.05P Derive inverse demand What is demand choke price

Question

Question

business economics

Answer 1

Answer #1

Answer
a)
inverse demand function is
Q=40-0.05P
0.05P=40-Q
P=800-20Q
the inverse demand function is P=800-20Q

b)
a choke price where Qd=0
P=800-20*0
P=800
the price is $800

Answer 2

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