Kate's Great Crete (KGC)is a local monopolist of ready-mix concrete.Its annual demand function is Q = 20,000 - 400P,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is KGC's inverse demand function?

Question

Quizplus · Accepted Answer

The inverse demand function is found by solving the demand function for P. Starting from Q = 20,000 - 400P, rearranging for P gives P = (20,000 - Q) / 400 = 50 - 0.0025Q.

Kate's Great Crete (KGC)is a Local Monopolist of Ready-Mix Concrete