Question

Suppose the total demand function for a good was made up of 10 identical, individual demanders all with a demand function given by: qD = 20-0.5P.
Find the inverse, total demand function and fill in the missing values below.
P = 40 - _____ QD
(Round to the nearest two decimal places if necessary.)

Answer 1

Answer:

P = 40 - 2QD

Explanation:

Given;

QD = 20-0.5P ................................. (1)

FFrom equation (1), we can now solve for P by first rearranging as follows:

0.5P = = 20 - QD

Divide through by 0.5, we have:

(0.5 / 0.5)P = (20 / 0.5) - (1 / 0.5)QD

P = 40 - 2QD

Therefore, the missing value is 2 and the answer is given as follows:

P = 40 - 2QD