Answer to Question #132747 in Microeconomics for Farah tabinda

Question

1. If the market demand curve is D(p) = 100 − .5p, what is the inverse demand curve?
2. An addict’s demand function for a drug may be very inelastic, but the market demand function might be quite elastic. How can this be?
3. If D(p) = 12 − 2p, what price will maximize revenue?
4. Suppose that the demand curve for a good is given by D(p) = 100/p.
What price will maximize revenue?
5. True or false? In a two good model if one good is an inferior good the other good must be a luxury good.

Answer 1

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