Let the demand function for a product be Q = 100 - 2P

Economics Jun 23, 2021

Let the demand function for a product be Q = 100 - 2P. The inverse demand function of this demand function is: A. Q = 100 + 2P. B. P = 50 - 0.5Q. C. P = 50 + 0.5Q. D. None of the answers is correct.

Expert Solution

Answer

B .

Explanation

Given,

Demand Function:

Q = 100 - 2P

For Inverse Demand Function, We have to write in terms of P

2P = 100 - Q

Now we divide the values by 2

P = 50 - 0.5Q

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