In the market for good X, demand is Q^D = 6,000 - 0.8P and supply is Q^S = 0.4P - 300. Which of the following is the inverse demand equation?

Name: In the market for good X, demand is Q D = 6,000 - 0.8P and supply is Q S = 0.4P - 300. Which of the following is the inverse demand equation?
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Question

Quizplus · Accepted Answer

The inverse demand equation is found by solving the demand equation for P. The given demand equation is Q = 6,000 - 0.8P. Rearranging for P gives P = (6,000 - Q) / 0.8 = 7,500 - 1.25Q, which matches choice C.

In the Market for Good X, Demand Is QD =

In the Market for Good X, Demand Is Q^D =