Let the demand function for a product be Q = 100 − 2P.The inverse demand function of this demand function is:
A) Q = 100 + 2P.
B) P = 50 − 0.5Q.
C) P = 50 + 0.5Q.
D) None of the preceding answers is correct.

Question

Quizplus · Accepted Answer

The inverse demand function is obtained by solving the original demand function for P. 
Q = 100 − 2P 
2P = 100 − Q 
P = 50 − 0.5Q 
Therefore, the inverse demand function is P = 50 − 0.5Q.

Let the Demand Function for a Product Be Q =