Let the demand function for a product be Q = 50 − 5P.The inverse demand function of this demand function is:
A) Q = 25 + P
B) P = 10 − 0.2Q
C) P = 10 + 0.2Q
D) P = 50 − 0.2Q

Question

Quizplus · Accepted Answer

The inverse demand function is found by solving the demand function for P. Starting with Q = 50 - 5P, we rearrange to get P on one side: 5P = 50 - Q, then divide by 5 to isolate P: P = 10 - 0.2Q, which matches choice B.

Let the Demand Function for a Product Be Q =