1. The market demand curve is D(p) = 40 -0.2p. (a) (b) (b) What is the inverse demand curve? What is the price elasticity of demand when p = 10? What is the price at which the price elasticity of demand is -2? What price will maximize revenue? What is the price elasticity of demand at that price?
1. The market demand curve is D(p) = 40 -0.2p. (a) (b) (b) What is the inverse demand curve? What is the price elasticity of demand when p = 10? What is the price at which the price elasticity of demand is -2? What price will maximize revenue? What is the price elasticity of demand at that price?
Chapter1: Making Economics Decisions
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Transcribed Image Text:1. The market demand curve is D(p) = 40 -0.2p.
(a)
(b)
(b)
What is the inverse demand curve?
What is the price elasticity of demand when p = 10?
What is the price at which the price elasticity of demand is -2?
What price will maximize revenue? What is the price elasticity of
demand at that price?
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