The market demand for a monopoly firm is estimated to be:
where
is quantity demanded,P is price,M is income,and
is the price of a related good.The manager has forecasted the values of M and
will be $50,000 and $20,respectively,in 2016.For 2016,the inverse demand function is
A) Q = 300- 0.005P.
B) P = 600 -0.001Q.
C) P = 300 - 0.002Q.
D) P = 600- 0.004Q.
E) none of the above
Correct Answer:
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