Consider the following demand function
How to solve for the inverse demand function based on the given demand function?
To determine the inverse demand function:
We need to swap the roles of the price and quantity variables in the demand function.
The demand function provided is:
Qd = 900 - 15P
To find the inverse demand function, we interchange P and Qd:
P = (900 - Qd) / 15
By dividing both sides by 15, we get:
P = 60 - 0.0667Qd
Therefore, the inverse demand function is represented by Option 1: P = 60 - 0.0667Qd.