Asked by Pavlog Pawluk on May 10, 2024
Verified
The demand function is described by the equation q(p) 130 p/5.The inverse demand function is described by the equation
A) p(q) 650 5q.
B) p(q) 1/130 q/5.
C) q(p) 130 5p.
D) q(p) 1/(130 p/5) .
E) p(q) 130 q/5.
Demand Function
A mathematical representation that describes the relationship between the quantity of a good demanded and its price, among other variables.
Inverse Demand Function
A representation of demand that expresses price as a function of quantity, rather than the conventional demand function which expresses quantity demanded as a function of price.
- Understand the connection between demand functions and their corresponding inverse forms.
Verified Answer
PT
Ph??c Th?nhMay 15, 2024
Final Answer :
A
Explanation :
To find the inverse demand function, you solve the original demand function for p in terms of q. The given demand function is q = 130 - p/5. Solving for p gives p = 650 - 5q, which matches choice A.
Learning Objectives
- Understand the connection between demand functions and their corresponding inverse forms.